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1 Fund, 2 Offices, 10%-11%: IOI in Singapore

Home › 1 Fund, 2 Offices, 10%-11%: IOI in Singapore

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Two assets, two offices, one fund and a return target of 10%-11%: those are the numbers behind a plan EdgeProp, citing a Bloomberg report, described on 15 October 2026. IOI Properties Group is in exclusive talks to acquire Chijmes and the Capitol Kempinski hotel, according to that account, and none of it has been agreed. Due diligence was under way at the time of the report, and the consideration was undisclosed.

The Figures Office Owners at ARC 380 Can Read

  1. 2 assets in talks: Chijmes, the heritage dining and retail complex in the civic district, and the Capitol Kempinski hotel nearby.
  2. About one-third of Chijmes and 80% of Capitol Singapore are controlled by Perennial Holdings, EdgeProp reported, citing Bloomberg. Perennial did not comment.
  3. 2 office assets in the fund's first group: the office component of South Beach and IOI Central Boulevard Towers.
  4. About 50% is the stake IOI would hold in those initial assets once outside investors join.
  5. 5 to 7 years is the lock-up described for investors.
  6. Every 6 months is the planned distribution cycle.

The 10%-11% figure is an internal rate of return target, as EdgeProp, citing Bloomberg, relayed it. Fund set-up was described as due within two months of the interview, and more Singapore assets could be added over time, with a REIT listing as a longer-term aim. In plain terms, the structure would bring IOI's holding in the first two office assets down to about half, while the return target and the half-yearly payout give outside investors two measurable terms to weigh. Each of these points is a description of intent, as reported by EdgeProp, citing Bloomberg, and nothing in the account is a completed transaction.

What the Plan Means for ARC 380 and Its Neighbours

Beyond the fund, the report said IOI wants to bring high-end fashion retailers into Chijmes, where tenant mix and rental income have been held back by a concentration of food and beverage outlets. If the hotel deal proceeds, an international ultra-luxury hotel brand would replace Kempinski. EdgeProp, citing Bloomberg, also noted that IOI's Singapore expansion has lifted its borrowings, which keeps gearing in focus. The report named prospective outside investors only by type: private equity, sovereign wealth funds and insurers. It also said a former Pimco Prime Real Estate executive would oversee the fund. On the Chijmes side, the notable figure is the split of ownership, since a one-third holder and other investors, including a vehicle backed by a Southeast Asian sovereign wealth fund, share the complex. EdgeProp reported the plan on 15 October 2026, citing Bloomberg.

For readers following commercial property, the story shows how institutional capital can be pooled around office floors. ARC 380 is a freehold mixed-use commercial development at 380 Jalan Besar in District 12 by Tong Eng Group, about five minutes on foot from Bendemeer MRT. Strata offices occupy Levels 5 to 16, with twelve strata units on a typical office level, ranging from about 700 sqft to a full floor of about 9,500 sqft. Retail and F&B sit on Level 1, with a Sky Terrace on the 4th storey and a Roof Terrace with a 25 m pool on the 17th. TOP was in 2018. The project details page covers the specification.

Investors and owner-occupiers comparing commercial floors can ask the Sales Concierge for the floor plans through the contact page.

Source: EdgeProp, 15 October 2026.

General information only, not financial or legal advice.

Source: EdgeProp. This article is independent commentary; ARC 380 is not affiliated with the parties mentioned.