CapitaLand Trust to Sell Asia Square Tower 2 and Acquire Paragon in Major Singapore Property Deal

April 23: The move reflects CICT's strategy of shifting capital from a leasehold office asset to a higher-yielding freehold property.

Asia Square Tower 2 (Sale)

• Sale price: SGD 2.48 billion

• Buyer: IOI Properties (Malaysia)

• Premium over valuation: 9.9%

• Expected gain: ~SGD 199.9 million

• Occupancy: 95.8%

• Expected completion: Second half of 2026

Paragon (Acquisition)

• Purchase price: SGD 3.9 billion

• Seller: Cuscaden Peak (backed by Temasek)

• Type: Freehold integrated development on Orchard Road

• Net lettable area: ~714,915 sq ft

• Occupancy: 100%

• Entry yield: 3.9%

• Expected DPU increase: 2.1%

Funding for Acquisition

• Debt

• Proceeds from Asia Square Tower 2 sale

• Private placement of SGD 600 million

IOI Properties' Position

The purchase price was about SGD 50 million lower than a valuation conducted by Savills. The acquisition will strengthen IOI's presence in the Marina Bay area and increase its Singapore investment property portfolio to nearly SGD 10 billion.