CapitaLand Integrated Commercial Trust will acquire a 50% stake in Singapore’s ION Orchard Mall for an agreed property value of S$1.85 billion ($1.42 billion), the real estate investment trust said on Tuesday.
As per the deal, CapitaLand Integrated will acquire an entire stake in CapitaLand Retail Singapore Investments, the entity which owns the 50% interest in ION Orchard for a consideration of S$1.08 billion ($826.51 million) from CapitaLand Investment, the REIT said in a statement.
ION Orchard is an eight-storey destination mall at the gateway of Singapore’s Orchard Road.
“ION Orchard has close to 300 international and local brands, ranging from luxury to necessity trades, across eight storeys of retail space,” CapitaLand Integrated Commercial Trust CEO Tony Tan said.
“The diverse trade mix will enable CICT to capture the luxury retail segment in Singapore.”
CapitaLand said the planned purchase is anticipated to result in distribution per unit (DPU) accretion immediately.
Through the acquisition of CapitaLand Retail Singapore Investments, the company will also acquire a 50% stake in ION Orchard Link, an underground pedestrian link with retail offerings, it said.
The combined agreed property value of ION Orchard and ION Orchard Link is about S$3.69 billion.
CapitaLand Integrated intends to fund this acquisition through an equity fundraising of around S$1.1 billion.
The deal is expected to be completed by the fourth quarter of 2024.
Source: Reuters.com