CapitaLand Integrated Commercial Trust (CICT) and its joint venture partners have announced the divestment of CapitaSpring’s serviced residence component to unrelated third parties for S$280m. CICT, which holds a 45% interest in the property, expects to complete the transaction by the second quarter of 2025, generating estimated net proceeds of S$37.8m and an exit yield of approximately 3.6%.
The divestment is part of CICT’s strategy to reconstitute its portfolio by shedding non-core assets and reinvesting in more distribution per unit (DPU)-accretive opportunities. Tan Choon Siang, CEO of the manager of CICT, stated, “We have divested the serviced residence, a non-core asset, at a premium to its last valuation. This reflects our disciplined approach to portfolio reconstitution, enabling us to redeploy capital into more DPU-accretive opportunities and strengthen CICT’s leadership position as the proxy for Singapore commercial real estate.”
Located at Raffles Place, Singapore, the serviced residence’s sale underscores CICT’s commitment to enhancing the resilience and quality of its portfolio, aiming to create sustainable value for its unitholders. This move is expected to bolster CICT’s standing in the competitive Singapore commercial real estate market.
As CICT continues to seek opportunities for portfolio enhancement, the divestment of CapitaSpring’s serviced residence marks a significant step in optimising returns and maintaining its leadership in the sector. The completion of this transaction will further solidify CICT’s strategic objectives and financial health.
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