CapitaLand Integrated Commercial Trust (CICT) has announced the proposed acquisition of the 55% of CapitaSpring it does not own.
Of this, 45% is from CapitaLand Development (CLD) and 10% is from Mitsubishi Estate Co (MEC).
According to an Aug 5 announcement, the agreed property value is $1,900.0 million on a 100% basis. The agreed property value is the average of two independent valuations of the commercial component, commissioned separately by the trustee and the manager of CICT.
On a pro forma basis, the acquisitions are expected to deliver a distribution per unit (DPU) accretion of 1.1%, assuming CICT had held and operated 100% of CapitaSpring’s commercial component from Jan 1 to June 30. Pro forma aggregate leverage is expected to increase marginally to 38.3% from 37.9% as at June 30.
The total acquisition outlay is approximately $482.3 million, which comprises the estimated purchase consideration of the 55% share of the trust that holds CapitaSpring, Glory Office Trust’s existing unitholders’ loans and other transaction-related expenses.
CICT intends to finance the total acquisition outlay (excluding the acquisition fee related to the acquisition of CLD’s 45% interest, which will be paid in CICT units) using proceeds raised through a private placement, which plans to raise $500 million.
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Tan Choon Siang, CEO of CICT's manager, says: "CapitaSpring has consistently performed well, maintaining nearly 100% committed occupancy as at 30 June 2025, underpinned by good quality tenants from diverse trade sectors. 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."
