CICT Sells Asia Square Tower 2 for S$2.48 Billion, Acquires Paragon on Orchard Road for S$3.9 Billion

CICT has entered into a put and call option agreement to sell its 100 per cent stake in Asia Square Tower 2 to IOI Marina View, a wholly-owned subsidiary of Malaysian-listed IOI Properties Group. The divestment value of S$2.48 billion represents a 9.9 per cent premium to the property’s independent valuation of S$2.25 billion as at 31 December 2025.

CICT’s exit yield on the asset is approximately 3 per cent on a post-tax basis. After taking into account the repayment of existing shareholder loans and divestment-related expenses, CICT expects to receive estimated net proceeds of S$2.45 billion.

The acquisition is a strategic fit for IOI Properties, which already owns IOI Central Boulevard Towers — a 1.26 million square foot Grade A office development located directly across the road from Asia Square Tower 2. Adding Asia Square Tower 2 to its holdings significantly expands IOI’s footprint in Singapore’s Marina Bay financial district.

CICT is acquiring Paragon from Cuscaden Peak for S$3.9 billion. Paragon is a freehold development on Orchard Road comprising a six-storey retail podium with two basement levels, plus two medical and office towers. The property has a total net lettable area of 714,915 square feet and enjoys 100 per cent committed occupancy.

The acquisition yield of 3.9 per cent is notably higher than CICT’s exit yield of 3 per cent on Asia Square Tower 2, making the swap accretive to the trust’s distribution per unit (DPU). CICT’s CEO Tan Choon Siang described the deal as strengthening the resilience and quality of the trust’s Singapore-focused portfolio, combining sizeable upscale retail exposure with a defensive medical component supported by structural tailwinds such as an ageing population and rising medical tourism.

CICT plans to undertake a comprehensive evaluation of asset enhancement opportunities for Paragon at the appropriate time. The last asset enhancement initiative for Paragon was completed in 2009, suggesting significant potential to unlock further value.

The S$3.9 billion Paragon acquisition will be funded through a combination of net sales proceeds from the Asia Square Tower 2 divestment, debt, and proceeds from a private placement launched on 20 April 2026. The proposed placement has an issue price ranging between S$2.292 and S$2.332 per new unit, with targeted gross proceeds of at least S$600 million.

Both the acquisition of Paragon and the divestment of Asia Square Tower 2 are expected to be completed in the second half of 2026. The deal positions CICT to benefit from Orchard Road’s enduring appeal as Southeast Asia’s premier retail and lifestyle destination, while crystallising gains on a Marina Bay office asset at a significant premium to book value.