CapitaLand Integrated Commercial Trust to buy 50% stake in Singapore mall (updated)

CapitaLand Integrated Commercial Trust

03/09/2024 01:24

(Adds details on the deal, CapitaLand CEO quote in paragraphs
2-10)
       Sept 3 (Reuters) - CapitaLand Integrated Commercial
Trust  CMLT.SI  will acquire a 50% stake in Singapore's ION
Orchard mall for an agreed property value of S$1.85 billion
($1.42 billion), the real estate investment trust said on
Tuesday.
    As per the deal, CapitaLand Integrated will acquire an
entire stake in CapitaLand Retail Singapore Investments, the
entity which owns the 50% interest in ION Orchard for a
consideration of S$1.08 billion ($826.51 million) from
CapitaLand Investment  CAPN.SI , the REIT said in a statement.
    ION Orchard is an eight-storey destination mall at the
gateway of Singapore's Orchard Road.
    "ION Orchard has close to 300 international and local
brands, ranging from luxury to necessity trades, across eight
storeys of retail space," CapitaLand Integrated Commercial Trust
CEO Tony Tan said. 
    "The diverse trade mix will enable CICT to capture the
luxury retail segment in Singapore."
    CapitaLand said the planned purchase is anticipated to
result in distribution per unit (DPU) accretion immediately.
    Through the acquisition of CapitaLand Retail Singapore
Investments, the company will also acquire a 50% stake in ION
Orchard Link, an underground pedestrian link with retail
offerings, it said.
    The combined agreed property value of ION Orchard and ION
Orchard Link is about S$3.69 billion.
    CapitaLand Integrated intends to fund this acquisition
through an equity fundraising of around S$1.1 billion.
    The deal is expected to be completed by the fourth quarter
of 2024.
    
($1 = 1.3067 Singapore dollars)

 (Reporting by Adwitiya Srivastava in Bengaluru; Editing by
Rashmi Aich)
 ((Adwitiya.Srivastava@thomsonreuters.com;))