CapitaLand Integrated Commercial Trust (CICT) has announced its acquisition of the remaining 55% stake in CapitaSpring, a premium Grade A office tower located in the heart of Singapore’s Central Business District. The acquisition, valued at $1,390 million (S$1,900 million), involves purchasing interests from CapitaLand Development Limited and Mitsubishi Estate Co. Upon completion in the third quarter of 2025, CICT will gain full ownership of the 51-storey tower, which houses notable tenants such as JPMorgan Chase, Millennium Capital, and Sumitomo Mitsui Banking.
The acquisition is expected to deliver a distribution per unit (DPU) accretion of 1.1% despite its modest scale, according to a UOBKayHian report. CICT’s exposure to Singapore will increase from 94% to 95% of its portfolio valuation. The acquisition will be funded by proceeds from a private placement, with plans to refinance loans at a lower interest rate of 2.7%.
CapitaSpring, with its strategic location and reputable tenants, registered positive rental reversion of 5-7% in recent years. The limited supply of Grade A office space in the core CBD is anticipated to benefit CICT further. The acquisition will expand CICT’s portfolio valuation by 4.2% to $19.75 billion (S$27 billion).
The trust’s financial performance remains robust, with a 3.5% year-on-year increase in DPU for the first half of 2025. The acquisition aligns with CICT’s strategy to enhance its portfolio through strategic investments and asset enhancements. The trust maintains a stable balance sheet with an aggregate leverage of 37.9% as of June 2025.
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