Singapore’s Paragon Mall set for $3.9b acquisition by CapitaLand

The deal is expected to be 2.1% DPU accretive for CICT.

Paragon Mall along Orchard Road is set to be acquired by CapitaLand Integrated Commercial Trust (CICT) for $3.9b.

The acquisition, made through a sale and purchase agreement with Cuscaden Peak, will give CICT full ownership of the asset, which comprises retail, office, and medical suites in one of Singapore’s most sought-after shopping and lifestyle districts.

According to the trust, the deal is expected to be 2.1% distribution-per unit (DPU) accretive, supporting earnings growth for unitholders.

CEO Tan Choon Siang said Paragon is a “premier freehold integrated development” with strong and stable occupancy, supported by structural demand from an ageing population and medical tourism growth. “The asset’s ability to sustain strong committed occupancy across market cycles over the years underscores its enduring appeal to both tenants and consumers.”

He added that the deal follows the divestment of Asia Square Tower 2, with proceeds reinvested into Paragon at a higher net yield of 3.9%, compared to the 3.0% exit yield from the sale.

“The proposed acquisition is expected to be DPU accretive, whilst maintaining CICT’s aggregate leverage at a prudent level,” said Tan.