PublicInvest Positive on IGB’s £220 Million St Giles London Disposal

Kuala Lumpur — Public Investment Bank has expressed optimism over IGB Bhd’s (KL:IGBB) recent disposal of the St Giles Hotel London for £220 million (RM1.2 billion), noting that the proceeds could be strategically deployed for future expansions, particularly in retail and commercial property developments in Southkey, Johor.

The research firm highlighted that IGB has also intensified its landbanking efforts, acquiring strategic plots near Mid Valley Southkey, in Petaling Jaya, and Ipoh, strengthening its pipeline for potential industrial land in Selangor and office space in Bukit Jalil.

Reports indicate that billionaire Asif Aziz’s Criterion Capital is the purchaser of the 732-room, three-star hotel. PublicInvest noted that while the sale price is approximately 4% below valuation, it is expected to generate a net gain of RM452.6 million, equivalent to about 34 sen per share for IGB.

The research house expects the transaction to positively impact IGB’s earnings and net asset value for the financial year ending Dec 31, 2026, although it has maintained its earnings estimates and a ‘neutral’ call for now.

Additionally, the bank adjusted its 12-month target price to RM3.30 per share, up from RM2.95 based on book value. This target remains around 8% below IGB’s current trading price of RM3.61, which values the company at RM4.79 billion. The stock recently touched a 52-week high of RM3.71 per share on Monday.

For property investors and developers focused on commercial property in KL, factories in Puchong, and industrial property in the Subang area, the transaction reflects IGB’s strategic capital recycling approach—unlocking value from overseas assets to fund high-potential local developments, while maintaining a strong balance sheet and growth trajectory.