Densui Private and confidential
Business case

Monetising land bank under IOI Properties Group Berhad through renewable energy

Worked through on 601.45 acres at Bahau, Negeri Sembilan.

Eric Low Financial Advisor and Project Delivery Partner ericlow@densui.my
The first idea
If leased for solar
RM 7,200
rent per acre, every year, fixed for 25 years
2.2×
the oil palm income per acre
RM 6,786
palm beats solar rent only above this price
RM 4.3 m a year for the whole site. No capital, no construction, no operating cost for IOI.

Try your own numbers drag the sliders

Rent for the landRM 600 /acre/month
RM 450RM 800
CPO priceRM 4,000 /tonne
RM 2,500RM 7,000
Palm yield, fruit bunches7.0 t/acre/year
3.0 t20.0 t
SmallholdersTypical estatesBest estatesNot recorded in Malaysia7.0 t/acre · 17.3 t/hectare
The site sits 1.5 km from PMU Bahau on an existing road reserve. A short connection costs less, so more value can go into rent. Capacity subject to confirmation by TNB.

CPO price, the last five years

2k4k6k8k4,40720215,08720223,81020234,18020244,29320254,1502026 estPalm earns more than solar rent above RM 6,786 a tonne

Yearly average, MPOB; 2026 a forecast. Above the dashed line, palm earns more than solar rent. Tap a bar to use that price.

Oil palm or solar

Oil palmRM 3,300 per acre a yearRM 50 m over 25 years on 601 acresSolar rentRM 7,200 per acre a yearRM 108 m over 25 years on 601 acres

Palm moves with CPO and yield; solar rent is fixed. Shown at 7.0 t/acre and RM 4,000 a tonne, less RM 2,300 upkeep, before replanting.

The second idea

IOI Properties as a new solar IPP

IOI releases one parcel for data centre use and owns the plant that powers it. Three income streams from the same land: the sale, the rent and the power.

Solar farm 500.20 acres power, direct line Data centre site 101.25 acres released IOI receives the sale proceeds, the solar rent on the balance, and its share of the plant.
Income 1. Release one parcel for data centre useA one off sum. The other 500.20 acres stay leased for the farm.
Price of the landRM 75 psf
RM 10RM 150
Agricultural landConverted industrialData centre land, JohorRM 75 psf · RM 3.27 m an acre
Sale proceeds
RM 331 m
101.25 acres, paid once
Solar rent on the rest
RM 3.6 m
500.20 acres, every year
Income 2. The solar farm, run as an IPP The whole plant at 100%. Power sold next door on a direct line, so no grid charge.
Length of the power contract
Total project cost
RM 546 m
167 MWp with a 4 hour battery, built for RM 496 m. Funded RM 356 m loan, RM 190 m equity
Power sales, year one
RM 94.4 m
236 GWh a year, about 54% of a year's use by a data centre of 50 MW of IT load
Profit after tax, year one
RM 33.3 m
After interest, depreciation and tax at 24%. Capital allowances over six years defer most of the cash tax.
Return on the equity
13.3%
Over 15 years, after tax. Money back in about 8.1 years. Cash multiple 3.00x.
How much of the farm IOI takes 30% The return is the same at any size. This sets IOI’s share.
0%, rent only100%, sole owner
IOI puts in
RM 57.0 m
30% of the RM 190 m equity in the farm
Share of profit after tax
RM 10.0 m
Year one
Cash to IOI, year one
RM 5.5 m
After the bank loan is paid
Rent plus cash
RM 9.1 m
Every year, besides the sale
Money back in
8.1 years
From the first power sold
Cash back over the contract
RM 171 m
Against RM 57.0 m put in, 3.00 times over 15 years
RM 57 m put in1367391217115RM m receivedyear

Cash IOI has received, added up year by year. Bars turn solid once it passes the money put in.

What idea 2 is worth to IOI
RM 331 monce, for the 101.25 acres released at RM 75 psf
RM 9.1 mevery year: RM 3.6 m rent, RM 5.5 m from the farm
RM 171 mfrom the stake over 15 years, against RM 57.0 m put in
At 40 sen over a 15 year contract, with IOI holding 30%. Title stays with IOI.
The solar farm behind these figures
Solar facility167 MWp, 128 MWac, on 500.20 acres at 3 acres per MWp
Battery, 4 hour duration83 MW / 333 MWh, 2 MWh per MWp over 4 hours
Power produced236 GWh a year at 1,416 kWh/kWp
Daytime surplus into the battery68 MW over the midday hours, about 341 MWh a day against 333 MWh of battery
Cost to buildRM 496 m, of which batteries RM 147 m and connection RM 17.1 m. With fees, construction interest and reserves, RM 546 m
Power sales, year oneRM 94.4 m per year, at 40 sen a unit
Cover on the bank loan1.30×, sculpted over 9 years at 5%
Connection1.5 km, costed at RM 17.1 m, against the 6 km in the benchmark rate
Basis and disclaimer

This is a desktop study. It is prepared from the land bank plan for the site, published solar resource data and current market cost benchmarks. No site visit, topographical or geotechnical survey, land title search, environmental assessment, grid impact study or detailed engineering design has been carried out.

Capacity, capital cost, generation, tariff, land price and return figures are indicative and expected to change, in some cases materially. Final parameters are subject to a feasibility study and a detailed engineering design for this site.

Solar farm: 3 acres per MWp, specific yield 1,416 kWh/kWp for this site in year one, degradation 0.4% a year, battery of 2 MWh per MWp at 4 hour duration. Cost: EPC USD 0.402 per watt before connection, with the connection priced separately for 1.5 km rather than the 6 km carried in the benchmark rate, battery USD 220,000 per MWp at about USD 110 per kWh installed, land fees USD 30,000 per MWp, owner contingency 1% of EPC, a development premium of RM 200,000 per MWp with SST, converted at 4.00 MYR to the dollar.

Operating: O&M USD 5,750 per MWp a year escalating 2%, asset management RM 14,000 per MWp with SST escalating 3%, insurance USD 1,500 and site costs USD 5,000 per MWp, KWIE levy 1% of revenue, 2% opex contingency, land rent escalating 5% every three years.

Funding: 69% debt at 5.0%, sculpted over 9 years to a 1.30 times cover, with standard arrangement, advisory, legal and commitment fees, 12 months of interest during construction and a six month debt service reserve. Tax at 24% with accelerated six year capital allowances and losses carried forward. Only the contracted term is counted, with no merchant tail and no terminal value, so the plant still has useful life left over at the end of the figures shown.

A direct line to a neighbouring load carries no System Access Charge, unlike a CRESS sale through the grid. It requires an Energy Commission licence or exemption, which is not yet secured. Export capacity at PMU Bahau has not been confirmed by TNB, and tariffs are assumptions rather than quoted prices.

Nothing here is a valuation of the land, an offer capable of acceptance, a commitment to lease or invest, or a financing proposal.

Bahau land lease proposal · lease figures from the proposal memorandum dated 5 August 2026, plant figures from Densui’s project finance model · private and confidential