CapitaLand Integrated Commercial Trust (CICT) has announced the acquisition of a 50% stake in Singapore's iconic ION Orchard mall for SGD1.85 billion. This deal will give CICT full ownership of the entity holding the 50% interest in the mall, known for its mix of luxury and essential brands. The acquisition also includes a 50% stake in ION Orchard Link, an underground retail link. The move is expected to strengthen CICT's luxury retail presence and be DPU accretive. To finance the acquisition, CICT plans to raise around SGD1.1 billion through equity fundraising, with completion expected by Q4 2024.
CapitaLand Integrated Commercial Trust (CICT) has announced that it will acquire a 50% stake in the iconic ION Orchard mall in Singapore for an agreed property value of SGD1.85 billion (approximately USD1.42 billion). Through this transaction, CICT will acquire the entire stake in CapitaLand Retail Singapore Investments, the entity that owns the 50% interest in ION Orchard, for a consideration of SGD1.08 billion (around USD 826.51 million) from CapitaLand Investment.
ION Orchard is a renowned eight-storey destination mall located at the gateway of Singapore's Orchard Road, one of the country's premier shopping destinations. The mall boasts a diverse mix of nearly 300 international and local brands, ranging from luxury to necessity trades, across its expansive retail space. According to CICT's CEO, Tony Tan, the acquisition of ION Orchard will enable the REIT to capture the luxury retail segment in Singapore, thanks to the mall's diverse trade mix. The planned purchase is also expected to result in immediate distribution per unit (DPU) accretion for CICT. In addition to the 50% stake in ION Orchard, CICT will also acquire a 50% stake in ION Orchard Link, an underground pedestrian link with its own retail offerings. The combined agreed property value of ION Orchard and ION Orchard Link is approximately SGD3.69 billion.
To finance the acquisition, CICT intends to raise around SGD1.1 billion through an equity fundraising. The transaction is expected to be completed by the fourth quarter of 2024, subject to necessary approvals and conditions. This strategic acquisition of the iconic ION Orchard mall is expected to strengthen CICT's position in the luxury retail segment and contribute to the growth of its overall portfolio in Singapore.
CapitaLand Integrated Commercial Trust's acquisition of a 50% stake in ION Orchard for SGD1.85 billion marks a strategic move to strengthen its presence in Singapore's luxury retail market. This deal, expected to be DPU accretive, includes a stake in the ION Orchard Link and enhances CICT's portfolio. With financing through equity fundraising and completion anticipated by Q4 2024, the acquisition positions CICT for further growth in the premium retail sector.
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