Singapore CapitaLand Integrated to Acquire Remaining 55% of CapitaSpring for $1.05 Billion
The move solidifies its position in Singapore's commercial real estate market and is expected to boost income
CapitaLand Integrated Commercial Trust (CICT) has announced a strategic move to fully acquire Glory Office Trust by purchasing the remaining 55% stake for a consideration of S$1.05 billion. This transaction marks a significant consolidation of ownership in one of Singapore’s iconic mixed-use developments, CapitaSpring, encompassing both its office and retail components. The acquisition aligns with CICT’s long-term strategy to deepen its presence in core markets and optimise portfolio synergies.
Asset Valuation and Transaction Structure
CICT estimates the total acquisition cost attributable to the office and retail segments of CapitaSpring, which are currently held under Glory Office Trust, to be approximately S$482.3 million. The valuation reflects prevailing market conditions and asset performance, positioning CapitaSpring as a premium offering within CICT’s portfolio. The balance of the acquisition value is understood to relate to transaction costs and associated capital commitments.
Divestment by Existing Stakeholders
As part of this transaction, CapitaLand Development has agreed to divest its 45% ownership, while Mitsubishi Estate will exit its 10% holding. Both entities currently form the primary stakeholders in Glory Office Trust alongside CICT. The move represents a realignment within the CapitaLand ecosystem, where both CapitaLand Integrated and CapitaLand Development operate as affiliates under the larger CapitaLand Group, which is ultimately backed by Singapore’s sovereign wealth fund, Temasek Holdings.
Financing the Acquisition
To support this strategic acquisition, CICT plans to raise approximately S$500 million through a private placement. This funding initiative reflects the trust’s disciplined capital management framework and its proactive approach to securing long-term unitholder value. The private placement route not only provides flexibility but also demonstrates investor confidence in the underlying asset and the trust’s growth trajectory.
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