CICT to acquire remaining 55% of CapitaSpring, finance deal via $500m private placement

SINGAPORE – CapitaLand Integrated Commercial Trust (CICT) on Aug 5 announced the proposed acquisition of the 55 per cent of CapitaSpring it does not already own, at an agreed property value of $1.05 billion.

Of this, 45 per cent is from CapitaLand Development (CLD) and 10 per cent is from Mitsubishi Estate. The agreed property value for the whole 51-storey office tower in Raffles Place is $1.9 billion.

The total acquisition outlay is estimated at $482.3 million.

“CapitaSpring has consistently performed well, maintaining nearly 100 per cent committed occupancy as at June 30, 2025, underpinned by good quality tenants from diverse trade sectors,” said Mr Tan Choon Siang, chief executive of CICT’s manager.

“We are confident in the office tower’s long-term potential to capture future growth, supported by sustained demand for quality Grade A office spaces and limited supply in the core CBD (Central Business District),” he added.

“Our Singapore exposure will increase from approximately 94 per cent to 95 per cent of our portfolio property value, advancing our strategic goal to deepen our presence in this core market.”

On a pro forma basis, the acquisition is expected to deliver a distribution per unit (DPU) accretion of 1.1 per cent, assuming CICT had held and operated 100 per cent of CapitaSpring’s commercial component in 2025 from Jan 1 to June 30.

CICT intends to finance it – excluding the acquisition fee related to CLD’s 45 per cent interest, which will be paid in CICT units – using proceeds raised through a private placement, which is expected to raise $500 million.

The proposed placement of more than 237.5 million new units will have a minimum offering price of $2.105 per unit.

The issue price range between $2.105 and $2.142 represents a discount of about 4.1 per cent to 5.7 per cent to the volume weighted average price of $2.2334 per unit for trades executed on Aug 4.

The new units are expected to be listed on the Singapore Exchange on Aug 14.

CICT’s manager estimates that the quantum of DPU held as at the close of Aug 13 under the cumulative distribution will be at between 6.92 cents and 7.02 cents. It announced that CICT posted a 3.5 per cent year-on-year rise in its first-half DPU to 5.62 cents, which will be paid on or around Sept 18.

Distributable income for the six months ended June grew 12.4 per cent to $411.9 million, compared with $366.5 million in the year-ago period.

This increase was attributed to the income contribution from Ion Orchard – acquired on Oct 30, 2024 – better performance from existing properties and lower interest expenses, partially offset by the divestment of 21 Collyer Quay.

CICT units were halted from trading before the market opened on Aug 5. They closed on Aug 4 at $2.24, up 2.3 per cent or five cents.