CapitaLand Integrated Commercial Trust (CICT) has sold a retail asset in Singapore for S$428m (€286.4m) to an unrelated third party.
The divestment of the Bukit Panjang Plaza is part of CICT’s broader portfolio reconstitution strategy and the proceeds would be redeployed into potential growth opportunities, or other strategic purposes.
“This will provide CICT with greater financial flexibility to repay debt, finance any capital expenditure, asset enhancement works and investments and/or finance general corporate and working capital requirements,” said the trust.
Separately, CICT and its consortium members - CapitaLand Development (CLD), and UOL - have clinched a prime site in the Hougang Central Government Land Sales for approximately S$1.5bn.
Under the joint development structure, CICT will develop and own 100% of the commercial component. While CLD and UOL have entered into a 50:50 joint venture to develop the residential component for sale.
Tan Choon Siang, CEO and executive director of the manager of CICT, said: “This move strengthens CICT’s portfolio exposure in Singapore, aligning with our value creation strategy and maintaining a Singapore-centric focus. It further cements CICT’s position as the proxy for commercial real estate in Singapore.
“This investment presents an opportunity to expand our retail footprint in Singapore where well-located suburban malls at major transport nodes are tightly held and rarely available, while establishing a strategic foothold in the northeast region.”
He added that this proactive approach allowed the company to shape the mall’s design, positioning, and leasing strategy from the outset. This would unlock Hougang’s untapped potential given its relatively low private retail space per capita and sizeable population.
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