CICT to remaining 55% of CapitaSpring, raise $500m from private placement to finance it
The Grade A office tower in Raffles Place has nearly 100 per cent committed occupancy as at end-June.
SINGAPORE - CapitaLand Integrated Commercial Trust (CICT) on Aug 5 announced the proposed acquisition of the 55 per cent of CapitaSpring it does not already own at an agreed property value of S$1.05 billion.
Of this, 45 per cent is from CapitaLand Development (CLD) and 10 per cent is from Mitsubishi Estate. The agreed property value for the whole 51-storey office tower in Raffles Place is $1.9 billion.
The total acquisition outlay is estimated $482.3 million.
Tan Choon Siang, CEO of CICT's manager said: 'CapitaSpring has consistently performed well, maintaining nearly 100 per cent committed occupancy as at 30 June 2025, underpinned by good quality tenants from diverse trade sectors. We are confident in the office tower's long-term potential to capture future growth, supported by sustained demand for quality Grade A office spaces and limited supply in the core CBD.
'Our Singapore exposure will increase from approximately 94 per cent to 95 per cent of our portfolio property value, advancing our strategic goal to deepen our presence in this core market.'
On a pro forma basis, the acquisition is expected to deliver a distribution per unit (DPU) accretion of 1.1 per cent, assuming CICT had held and operated 100 per cent of CapitaSpring's commercial component from Jan 1 to June 30, 2025.
CICT intends to finance it (excluding the acquisition fee related to the acquisition of CLD's 45 per cent interest, which will be paid in CICT units) using proceeds raised through a private placement, which is expected to raise $500 million.
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The proposed placement of over 237.5 million new units will have a minimum offering price of $2.105 per unit.
The issue price range between $2.105 and $2.142 represents a discount of between around 4.1 and 5.7 per cent to the volume weighted average price (VWAP) of $2.2334 per unit for trades of the units executed on Aug 4.
The new units are expected to be listed on the Singapore Exchange on Aug 14.
CICT's manager estimates that the quantum of DPU held as at the close of Aug 13 under the cumulative distribution to be at between 6.92 cents and 7.02 cents.
It also announced on Aug 5 that CICT posted a 3.5 per cent year-on-year rise in its first half DPU to 5.62 cents, which will be paid on or around Sept 18.
Distributable income for the six months ended June grew 12.4 per cent to $411.9 million, compared with $366.5 million in the year-ago period.
This increase was attributed to the income contribution from ION Orchard, which was acquired on Oct 30, 2024, better performance from existing properties and lower interest expenses, partially offset by the divestment of 21 Collyer Quay
CICT units were halted from trading before the market opened on Aug 5. They closed on Aug 4 at $2.24, up 2.3 per cent or five cents.
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