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CapitaLand Integrated Commercial Trust (CICT) will acquire full ownership of the office and retail portions of CapitaSpring in Singapore's Raffles Place, buying out CapitaLand Development's 45% and Mitsubishi Estate's 10% stakes. Valued at SGD 482.3 million, the deal totals around SGD 1.05 billion and will be funded through a SGD 500 million private placement. With this move, CICT's Singapore exposure rises to 95%, and distribution per unit is expected to increase by 1.1% (pro forma). CapitaSpring-a 51-storey tower with premium offices and retail-boasts high occupancy, particularly from banking, legal, and tech tenants. The acquisition supports CICT's strategy to grow via high-quality, local assets.
CapitaLand Integrated Commercial Trust announced plans to acquire the remaining interest in Glory Office Trust, thereby gaining full ownership of the office and retail sections of the CapitaSpring development located in Singapore's Raffles Place. The acquisition will involve CapitaLand Development offloading its 45% interest and Mitsubishi Estate divesting its 10% share, enabling CICT to assume complete control of the asset. Advertisement
The overall consideration for the transaction is estimated to be around SGD 1.05 billion, with the office and retail components valued at SGD 482.3 million. CICT indicated that the purchase would be funded via a private placement of new units, targeting a capital raise of roughly SGD 500 million.
The acquisition is part of CICT's ongoing strategy to deepen its focus on core markets, particularly within Singapore. As a result of the deal, the trust's exposure to Singapore-based assets will increase from approximately 94% to 95%. According to the management, the transaction is expected to be accretive, with a projected uplift of about 1.1% in distribution per unit on a pro forma basis.
CapitaSpring, a 51-storey integrated tower developed jointly by CapitaLand and its partners, features premium office spaces and a retail podium. The building has maintained high occupancy rates, supported by strong tenant demand from the banking, legal, and technology sectors. With near-full leasing already in place, the trust is poised to benefit from stable rental income and a diversified tenant base.
CICT also stated that this acquisition aligns with its broader goal of enhancing long-term unitholder value through selective and strategic investment in high-quality commercial properties within familiar geographies.
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