IOIPG REIT IPO: Can The Rent Growth Hold

Malaysia's largest shopping mall is heading to Bursa Malaysia inside a REIT, with IOI City Mall, six hotels and two office parks valued at about RM7.6 billion. Investors are being offered a projected yield of about 6%, but the proceeds go to the sponsor, not the REIT, and the forecasts rely on rising rents and fuller office towers. On The Breakfast Grille, Chris Chong, CEO of IOIPG REIT Management, assesses what has to go right for that yield to hold. He also covers variable rent assumptions, office occupancy, floating-rate debt and why the public tranche is about 2% of the offering.

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