Advertisement
Private equity has played a significant role in shaping Indi...
In today’s real estate landscape, fitness is often treated...
In this episode of Prop Personalities, we sit down with Hars...
Luxury real estate is one of the most talked-about segments ...
Welcome to Prop Personalities by Prop News Time - a podcast ...
CapitaLand Integrated Commercial Trust has entered into two major transactions in Singapore, involving the sale of Asia Square Tower 2 and the acquisition of Paragon. The combined deal value stands at around SGD 6.4 billion. The move reflects the trust’s strategy to shift capital from a leasehold office asset to a freehold mixed-use development with stronger returns. The sale is expected to generate a notable gain, while the acquisition is likely to improve distribution per unit. The transactions also highlight continued investor interest in prime Singapore real estate assets.
Singapore-based CapitaLand Integrated Commercial Trust (CICT) has agreed to sell Asia Square Tower 2, a commercial property located in the Marina Bay precinct, to Malaysia’s IOI Properties for SGD 2.48 billion (USD 1.95 billion). Advertisement
At the same time, the trust has entered into an agreement to acquire Paragon, a freehold integrated development on Orchard Road, for SGD 3.9 billion from Cuscaden Peak. The seller is backed by shareholders including Singapore’s state investor Temasek. Together, the two transactions amount to a total value of about SGD 6.4 billion.
The move reflects CICT’s strategy of reallocating capital from a leasehold office asset to a higher-yielding freehold property that includes retail, office and medical components. This approach is in line with the trust’s ongoing portfolio restructuring to enhance long-term returns and asset quality.
Asia Square Tower 2 is a 46-storey development with a total area of around 773,000 square feet, comprising office, hotel and retail space. Completed in 2013, the asset was valued at SGD 2.25 billion at the end of the past year. The agreed sale price indicates a premium of 9.9% over its valuation and reflects an exit yield of about 3%. The property had an occupancy level of 95.8% as of the end of the past quarter.
CICT expects to record a gain of approximately SGD 199.9 million after accounting for divestment-related expenses. The transaction is scheduled to be completed in the second half of 2026.
IOI Properties stated that the purchase price was about SGD 50 million lower than a valuation conducted by Savills earlier in April. The acquisition will strengthen its presence in the Marina Bay area and increase its Singapore investment property portfolio to nearly SGD 10 billion.
Paragon, the asset being acquired by CICT, has a net lettable area of about 714,915 square feet and was fully occupied at the end of January. The property offers an entry yield of 3.9% and is expected to increase the trust’s distribution per unit by 2.1%.
The acquisition will be funded through a mix of debt, proceeds from the divestment, and a private placement of SGD 600 million.
In recent years, Singapore’s commercial property market has seen steady institutional activity, with REITs actively reshaping portfolios to balance income stability and growth. Freehold retail-led developments in prime locations such as Orchard Road have continued to attract interest due to their long-term value and consistent footfall.
Source Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
