Current location site: Global

Singapore, 20 April 2026 – Singapore’s first and largest commercial real estate investment trust, CapitaLand Integrated Commercial Trust (CICT), has entered into a sale and purchase agreement to acquire a 100% interest in Paragon, a premier freehold integrated development along Orchard Road, comprising retail, office and medical suites, for an agreed property value of S$3,900.0 million¹ from Cuscaden Peak². The proposed acquisition is expected to enhance CICT’s high‑quality and diversified portfolio of retail, office and integrated assets, while further reinforcing its market leadership as the largest owner of private commercial real estate in Singapore. The proposed acquisition is expected to be DPU accretive by 2.1%³.

Total acquisition outlay and method of financing

The total acquisition outlay is approximately S$3,919.0 million, which comprises the estimated purchase consideration and other transaction-related expenses. Subject to completion adjustments, the estimated purchase consideration takes into account, amongst other things, the agreed property value and other net liabilities.  

CICT intends to finance the total acquisition outlay excluding the acquisition fee to be paid in CICT units (Total Acquisition Cash Outlay), through a combination of debt, and net proceeds from both the private placement announced on 20 April 2026⁸ and the net sales proceeds from the divestment of AST2. In the event the completion of the proposed acquisition of Paragon takes place before the completion of the sale of AST2, a bridging loan in place of the net sales proceeds from the divestment of AST2 will be applied towards partially funding the Total Acquisition Cash Outlay and the debt will be subsequently pared down following the completion of the sale of AST2. The acquisition fee in relation to the proposed acquisition is to be paid in the form of Units to be issued to the Manager⁹.

Approvals required

The proposed acquisition constitutes an interested person/party transaction (IPT) under the Listing Manual of Singapore Exchange Securities Trading Limited (SGX) and the Property Funds Appendix of the Code of Collective Investment Schemes, as the Vendors are indirect wholly owned subsidiaries of Temasek Holdings (Private) Limited. As the value of the proposed acquisition exceeds 5% of CICT's latest audited net tangible assets, the proposed acquisition will be subject to the approval of CICT’s unitholders at an extraordinary general meeting to be convened, further details of which will be provided in due course.

About the Proposed Acquisition

Comprising a six‑storey retail podium with two basement levels, as well as two medical and office towers, Paragon is located along Orchard Road, Singapore’s renowned shopping belt and is well-served by the North‑South Line and Thomson‑East Coast Line via the Orchard and Somerset MRT stations. Over the years, Paragon has established itself as a preferred destination for discerning local shoppers and tourists seeking a refined selection of retail, lifestyle concepts, and experiences with over 190 international and accessible luxury and contemporary brands, complemented by a diverse line‑up of dining concepts. 

Planning for asset enhancement initiative (AEI) to drive property growth is one of CICT’s value creation strategies. As the last AEI at Paragon was in 2009, Cuscaden Peak conducted a preliminary analysis indicating that a major AEI could involve capital expenditure of S$300 million or more, depending on the eventual scope, design and timing. With the objective of strengthening Paragon’s positioning, relevance and long‑term performance, the Manager will undertake a comprehensive evaluation of asset enhancement opportunities, including detailed feasibility studies and cost assessments at the appropriate time. Any eventual capital expenditure for Paragon’s asset enhancement will be subject to the Manager’s internal processes and approvals, and the final scope and costs may differ from Cuscaden Peak’s preliminary analysis.

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^Notes

^{1. The agreed property value for both the 100% interest in Paragon Trust and Orchard 290 (Paragon), negotiated on a willing-buyer and willing-seller basis based on the average of the two valuations commissioned by the trustee of CICT and the Manager. As at 31 March 2026, independent valuations by Knight Frank Pte Ltd (appointed by the trustee of CICT) and Cushman & Wakefield VHS Pte. Ltd. (appointed by the Manager) valued Paragon at S$3,895.0 million and S$3,905.0 million, respectively.}

^{2. Cuscaden Peak Pte. Ltd., Cuscaden Peak Two Pte. Ltd., Times Properties Private Limited and Paragon Trust Management Pte. Ltd. (collectively, the Vendors).}

^{3. See announcement titled “Proposed acquisition of 100% interest in Paragon on a freehold basis” on 20 April 2026 for further details.}

^{4. Based on the net property income for the financial year ended 31 December 2025 (FY 2025) and AST2’s agreed property value of S$2,476.0 million. The yield for this AST2 divestment is stated on a post-tax basis because the property is held through a company structure, as opposed to under an approved sub-trust structure.}

^{5. Net yield is based on the net property income for FY 2025 adjusted based on (a) the annualised January 2026 rental income and (b) the average occupancy in FY 2025.}

^{6. The agreed property value of AST2 was negotiated on a willing-buyer and willing-seller basis, taking into account an independent valuation conducted by Cushman & Wakefield VHS Pte. Ltd. Commissioned by the manager of CICT (the Manager) and the trustee of CICT, AST2 was valued at S$2,252.0 million as at 31 December 2025.}

^{7. Pro forma aggregate leverage as at 31 December 2025, after the proposed acquisition and AST2 divestment.}

^{8. See the announcement titled “Launch of the Private Placement of New Units in CapitaLand Integrated Commercial Trust to raise Gross Proceeds of no less than approximately S$600.0 million” issued on 20 April 2026 for further details.}

^{9. As the proposed acquisition will constitute an “interested party transaction” under Appendix 6 of the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore, the acquisition fee shall be in the form of acquisition fee units and shall not be sold within one year from the date of issuance in accordance with Paragraph 5.7 of the Property Funds Appendix.}