CICT acquires full ownership of CapitaSpring for $1.045b

DPU expected to rise 1.1%.

CapitaLand Integrated Commercial Trust (CICT) has acquired the remaining 55% stake in the commercial component of CapitaSpring for $1.045b, gaining full ownership of the Grade A office tower in Raffles Place.

CICT entered into unit purchase agreements with CapitaLand Development (CLD) and Mitsubishi Estate Co., Ltd (MEC) to acquire their respective 45% and 10% interests. The agreed property value is based on two independent valuations and reflects CICT’s continued push to strengthen its core portfolio in Singapore.

The acquisition is expected to deliver a 1.1% increase in distribution per unit (DPU) on a pro forma basis, assuming full ownership from 1 January to 30 June 2025.

CapitaSpring, which was redeveloped from a former multi-storey car park, is currently fully occupied and houses major tenants including JPMorgan Chase, Millennium Capital Management, and Sumitomo Mitsui Banking Corporation.

The total acquisition outlay amounts to approximately $482.3m. CICT plans to fund the purchase through a private placement, with part of the acquisition fee for CLD’s 45% stake to be paid in CICT units.

Following the transaction, CICT’s aggregate leverage is expected to rise slightly from 37.9% to 38.3%. The acquisition will also increase CICT’s Singapore portfolio exposure from 94% to 95%.

The deal is classified as an interested person transaction under SGX rules due to CLD’s involvement but does not require unitholder approval.