SINGAPORE's CapitaLand Integrated Commercial Trust said on Tuesday that it would buy the remaining 55% stake in CapitaSpring from CapitaLand Development and Mitsubishi Estate on an agreed property value of S$1.05 billion ($816.55 million).
CapitaLand Integrated estimates the total acquisition outlay for the office and retail components of the 51-storey integrated development in Singapore's prime central business district at about S$482.3 million.
CapitaSpring has maintained nearly 100% committed occupancy as of June 30, 2025, underpinned by high-quality tenants from diverse trade sectors, CapitaLand Integrated CEO Tan Choon Siang said.
"Our Singapore exposure will increase from approximately 94% to 95% of our portfolio property value, advancing our strategic goal to deepen our presence in this core market."
CapitaLand Development will sell its 45% stake, while Mitsubishi Estate plans to divest its 10% interest. Both CapitaLand Integrated and CapitaLand Development are part of the broader CapitaLand Group, which Temasek Holdings backs.
The acquisition will be funded through a private placement expected to raise around S$500 million, the company said in a statement.
The offering will be priced between S$2.105 and S$2.142 per new unit.
The acquisitions are expected to deliver a distribution per unit (DPU) accretion of 1.1% on pro forma basis, assuming CapitaLand Integrated had held and operated 100% of CapitaSpring from January to June of this year.
Global demand for office space has grown steadily in the past few years after the pandemic, reinforced by Singapore-listed City Developments' sale of office complexes for S$834.2 million in June.
($1 = 1.2859 Singapore dollars) (Reporting by Sneha Kumar in Bengaluru and Scott Murdoch in Sydney; Editing by Sherry Jacob-Phillips and Rashmi Aich)
