CICT sells Asia Square Tower 2 to IOI Properties for $2.5 bil, buys Paragon from Cuscaden Peak for $3.9 bil

Atiqah Mokhtar

/ EdgeProp Singapore

April 20, 2026 9:14 AM SGT

propertyeditor@edgeprop.sg

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CapitaLand Integrated Commercial Trust is selling Asia Square Tower 2 (left), and purchasing Paragon (right) (Pictures: CICT, Cuscaden Peak)

CapitaLand Integrated Commercial Trust (CICT) is selling Asia Square Tower 2, an integrated development in the Marina Bay precinct, for $2.48 billion. It has also announced the acquisition of Paragon, a freehold development on Orchard Road, for $3.9 billion.

The company says it has entered into a put and call option agreement to sell its 100% stake in Asia Square Tower 2 to IOI Marina View, a wholly-owned subsidiary of Malaysian-listed IOI Properties Group.

The divestment value of $2.48 billion represents a 9.9% premium to Asia Square Tower 2’s independent valuation of $2.25 billion as at Dec 31, 2025. CICT’s exit yield on the asset is approximately 3% on a post-tax basis.

In an April 20 bourse filing, CICT said it will receive an estimated $2.45 billion in divestment proceeds after taking into account the repayment of existing shareholder loans and divestment-related expenses.

CICT had purchased Asia Square Tower 2 from American asset manager BlackRock for $2.15 billion in 2017. The 46-storey integrated development along Marina View comprises Grade A offices and ancillary retail space, with a total net lettable area (NLA) of 733,460 sq ft. It also houses The Westin Singapore.

In its filing, CICT says the asset has “reached a mature phase in its property cycle, marking an opportune time to monetise the asset and crystallise value for unitholders.”

In a separate April 20 statement, IOI Properties said its acquisition of Asia Square Tower 2 strengthens its presence in the Singapore CBD precincts, complementing its existing portfolio of IOI Central Boulevard Towers – connected to Asia Square Tower via an elevated pedestrian bridge – and South Beach Tower.

“This latest acquisition reflects IOI Properties’ continued conviction in prime Singapore assets, which offer stable recurring income streams supported by strong market fundamentals,” adds Lee Yeow Seng, group CEO of IOI Properties Group.

Meanwhile, CICT has also entered into a sale and purchase agreement with Temasek Holdings-backed Cuscaden Peak to acquire a 100% interest in Paragon for $3.9 billion. The proposed acquisition will have an entry yield of 3.9%, based on net property income. It is also expected to be distribution per unit (DPU) accretive by 2.1%.

CICT will fund the purchase of Paragon using a combination of the net sales proceeds from its divestment of Asia Square Tower 2, debt, and proceeds from a private placement that was launched on April 20. The proposed placement has an issue price ranging between $2.292 to $2.332 per new unit, with targeted gross proceeds of at least $600 million.

“This acquisition strengthens the resilience and quality of CICT’s Singapore‑focused portfolio, combining sizeable, upscale retail exposure with a defensive medical component, which is supported by strong structural tailwinds such as an ageing population and rising medical tourism,” says Tan Choon Siang, CEO of CICT’s manager.

He also points out that CICT’s purchase of Paragon is at a higher net yield of 3.9%, versus its exit yield of 3% for Asia Square Tower 2. “The proposed acquisition is expected to be DPU accretive, while maintaining CICT’s aggregate leverage at a prudent level,” he adds.

Paragon is a freehold development on Orchard Road comprising a six-storey retail podium with two basement levels, as well as two medical and office towers. It has a total NLA of 714,915 sq ft, with committed occupancy of 100%.

CICT says it plans to undertake a comprehensive evaluation of asset enhancement opportunities for the asset “at the appropriate time”. The last time Paragon completed an asset enhancement initiative was in 2009.

CICT is expected to complete both the acquisition of Paragon and the divestment of Asia Square Tower 2 in the second half of 2026.