CapitaLand Integrated Commercial Trust (CICT) has announced its intention to acquire the remaining 55% stake in CapitaSpring, an office tower in Singapore, for an agreed property value of $1.39 billion (S$1.9 billion). This acquisition will bring CICT’s ownership of the property to 100%. The move is expected to boost the proforma distribution per unit (DPU) by 1.1% and slightly increase the trust’s gearing to 38.3%.
In the first half of 2025, CICT reported a distributable income of $302.5 million (S$411.9 million), marking a 12.4% year-on-year increase, supported by contributions from ION Orchard and reduced interest expenses. The trust’s overall portfolio committed occupancy was 96.3%, with retail spaces at 98.6% and office spaces at 94.6%. CICT also achieved rental reversions of 7.7% for retail and 4.8% for office spaces during this period.
CICT plans to fund the acquisition partially through a private placement of no less than $367.5 million (S$500 million). The acquisition is anticipated to expand CICT’s portfolio assets under management (AUM) to $19.8 billion (S$27 billion), with 95% of the portfolio being Singapore-centric. The trust maintains an “Add” rating with a target price of $1.80 (S$2.45), reflecting its diversified portfolio and strong balance sheet.
The acquisition of CapitaSpring is expected to enhance CICT’s income and strengthen its position in the Singaporean real estate market, with potential re-rating catalysts including clear inorganic growth prospects and robust occupancy and rental reversions.
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