SINGAPORE’s CapitaLand Integrated Commercial Trust (CICT) said on Monday it has agreed to sell Asia Square Tower 2, a commercial development in Marina Bay precinct, to Malaysia’s IOI Properties for S$2.48 billion ($1.95 billion).
The trust will also acquire Paragon, a freehold integrated development on Orchard Road, for S$3.9 billion from Cuscaden Peak, whose shareholders include Singapore state investor Temasek. Both deals total roughly S$6.4 billion.
The transactions reflect how Singapore’s largest commercial real estate investment trust REIT is recycling capital from a leasehold office asset into a higher-yielding freehold retail, office and medical complex.