CapitaLand Integrated Commercial Trust (CICT) has agreed to acquire Paragon, a landmark freehold mixed-use development on Singapore’s Orchard Road, from Temasek subsidiary Cuscaden Peak for S$3.9bn (€2.6bn).
CICT also announced a private placement to raise S$600m to help finance the acquisition.
Simultaneously, CapitaLand said it would sell a prime office tower, Asia Square Tower 2 to Marina View.
CICT, through CapitaLand Commercial Trust, has held the office tower since 2017. The divestment represents a 9.9% premium to the asset’s market valuation of S$2.25bn as at 31 December 2025.
Tan Choon Siang, CEO of the manager of CapitaLand Integrated Commercial Trust, said: “This acquisition strengthens the resilience and quality of CICT’s Singapore‑focused portfolio, combining sizeable, upscale retail exposure with a defensive medical component, which is supported by strong structural tailwinds such as an ageing population and rising medical tourism.
“The asset’s ability to sustain strong committed occupancy across market cycles over the years underscores its enduring appeal to both tenants and consumers. The proposed acquisition also deepens our presence in Singapore’s tightly held and highly sought-after downtown precinct.”
Tan said the trust has made a “timely divestment of Asia Square Tower 2 at an exit yield of 3%, enabling CICT to unlock value from a leasehold office asset and redeploy capital into a freehold integrated development, at a higher net yield of 3.9%.
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