CICT Sells Asia Square Tower 2 for S$2.5b, Buys Paragon

CapitaLand Integrated Commercial Trust (CICT) has completed its major portfolio restructuring through the sale of all its ownership in Asia Square Tower 2 and the purchase of Paragon mall in Singapore.

The REIT has agreed to sell the Grade an office tower in Marina Bay to IOI Properties for approximately S$2.48 billion, marking a strategic exit from an asset that has reached a mature stage in its lifecycle.The sale is being executed at a nearly 10 percent premium to its latest valuation, allowing the trust to unlock value and generate significant capital gains.

CICT is purchasing Paragon, which is a prime freehold integrated development situated on Orchard Road for approximately SG$3.9 billion. The property consists of a premium retail shopping center, which includes medical and office spaces that currently have all their units occupied.

Key Highlights

• CapitaLand Integrated Commercial Trust sells Asia Square Tower 2 to IOI Properties for S$2.5 billion.
• CICT acquires Paragon mall in Singapore for S$3.9 billion strengthening retail portfolio.
• Transaction reflects strategy shift towards resilient income generating retail and mixed use assets.

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The acquisition will enhance CICT's portfolio by introducing more resilient retail and healthcare assets, which will benefit from continuous consumer demand together with enduring market expansion factors.

The transaction will be funded through proceeds from the divestment, along with debt financing and a planned private placement which aims to raise a minimum of S$600 million. The acquisition of Paragon will provide distribution-accretive benefits which will increase investor returns according to the company.

The acquisition reflects CICT's strategic intention to invest in superior income-producing assets which provide sustainable value growth.

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The trust will strengthen its market position and enhance its portfolio strength by shifting funds from a leasehold office building to a unique freehold mixed-use development situated in a top retail area.