Singapore’s Largest REIT Buys Out Office Tower for $815 Million
Aug 5 2025
CapitaLand Integrated Commercial Trust is buying the rest of a prime office tower for S$1.05 billion.
The trust already owns 45% of the commercial component of the CapitaSpring building and is buying out the interests of CapitaLand Development and Mitsubishi Estate Co.
The deal estimates the commercial portion of the building at S$1.9 billion, with an entry yield of a "low 4%".
CapitaLand Integrated Commercial Trust is buying the rest of a prime office tower for S$1.05 billion.
The trust already owns 45% of the commercial component of the CapitaSpring building and is buying out the interests of CapitaLand Development and Mitsubishi Estate Co.
The deal estimates the commercial portion of the building at S$1.9 billion, with an entry yield of a "low 4%".
Singapore’s largest real estate investment trust is buying the rest of a prime office tower that houses the likes of JPMorgan Chase & Co., for S$1.05 billion ($815 million).
CapitaLand Integrated Commercial Trust, which already owns 45% of the commercial component of the CapitaSpring building, agreed with the private development arm of CapitaLand Group and Mitsubishi Estate Co. to buy out their respective 45% and 10% interests, according to exchange filings Tuesday. Both the REIT and CapitaLand Development are backed by Singapore state investor Temasek Holdings Pte.
The acquisition has long been floated, although as recently as May the REIT’s management told a conference that there was “no rush” to acquire the remaining stake. Singapore’s office deals market has been relatively subdued in recent quarters as high valuations deterred investors.
The deal estimates the commercial portion of the building at S$1.9 billion, based on the average of two valuations, with an entry yield of a “low 4%.”
To finance the acquisition outlay expected at about S$482.3 million, the REIT is doing a private placement of units. They will be priced at a minimum of S$2.105 apiece, to raise no less than S$500 million. That compares with its closing price of S$2.24 on Monday. Trading was halted on Tuesday morning.
The announcement came on the same day the trust announced its first-half results, with distribution per unit — a measure of cash paid out to investors — rising 3.5% to S$0.056.
Earlier this year, a serviced-residence component of the same building, in which the REIT has a similar stake, was divested for S$280 million. BlackRock Inc. and the hotel unit of Malaysian developer YTL Corp. bought the stake, Bloomberg News reported earlier.