CapitaLand Integrated Commercial Trust (CICT) is buying a 50% stake in the ION Orchard shopping centre in Singapore鈥檚 tourist strip for S$1.85bn (鈧�1.1bn) from its sponsor, CapitaLand Investment (CLI).
The remaining 50% of the mall continues to be held by the Hong Kong-based Sung Hung Kai Properties, a partner of CapitaLand group since 2006.
CICT has launched a private placement and a pro-rata and non-renounceable preferential offering to raise around S$1.1bn to fund the acquisition.
Teo Swee Lian, chairman of manager, CICTML (CapitaLand Integrated Commercial Trust Management), said: 鈥淭he opportunity to acquire ION Orchard, a highly sought-after premium destination mall, helps deepen our presence in Singapore.鈥�
Tony Tan, CEO of CICTML, said: 鈥淭his acquisition of ION Orchard is a transformational move in our strategy to build a resilient, quality and Singapore-focused diversified portfolio that can deliver sustainable returns to unitholders across different market cycles.鈥�
Lee Chee Koon, group chief executive officer of CLI, said: 鈥淐LI remains committed to the long-term growth of our listed funds by providing a pipeline of attractive assets with stable yields.
鈥淭his proposed divestment is a testament to CLI鈥檚 strong sponsor support for CICT and will strengthen CICT鈥檚 market position as the largest proxy for high-quality Singapore commercial real estate.鈥�
Upon the completion of this proposed divestment, CLI will have recycled S$3.6bn year-to-date, and it will use the divestment proceeds to further diversify the group鈥檚 portfolio across geographies and asset classes.
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