CICT sells stake in CapitaSpring serviced residence component for S$126 million

Transaction expected to conclude in Q2; exit yield is about 3.6%

Summarise

Add BT as a preferred source

Benjamin Cher

Published Fri, May 2, 2025 · 07:14 PM

CICT's stake in the serviced residence component of CapitaSpring is worth S$126 million. PHOTO: CAPITALAND

[SINGAPORE] The manager of CapitaLand Integrated Commercial Trust (CICT) on Friday (May 2) announced the sale of its stake in the serviced residence component of CapitaSpring.

CICT owns a 45 per cent interest in Glory SR Trust, which holds the serviced residence component of the integrated development. CICT’s manager did not disclose the purchasers, but described them as an “unrelated third party”.

Located in the Central Business District, CapitaSpring comprises 299 serviced residence units as well as office and retail spaces.

The agreed property value of the serviced residence component between the buyers and sellers is S$280 million, making CICT’s stake worth S$126 million. However, the trust’s share of the sale consideration is estimated to be S$37.8 million, after factoring in the repayment of existing unitholder loans owed by Glory SR Trust, as well as completion adjustments.

“We have divested the serviced residence, a non-core asset, at a premium to its last valuation,” said Tan Choon Siang, CEO of CICT’s manager.

The transaction is expected to conclude in the second quarter of this year.

CapitaLand Integrated Commercial Trust NPI slips 0.8% on lower revenue

Tan Choon Siang has more than 22 years of experience in financial management, investment, corporate finance, treasury and investment banking.

CapitaLand Integrated Commercial Trust appoints deputy CEO Tan Choon Siang as CEO from May 1

CICT's higher distributable income for FY2024 was driven mainly by contributions from Ion Orchard, in which it took a 50% stake last October.

CapitaLand Integrated Commercial Trust’s H2 DPU remains at S$0.0545

Asean Intelligence

Get insights into businesses across South-east Asia

Get the free report

The exit yield from the sale is about 3.6 per cent. The divestment is not expected to have any material impact on CICT’s net asset value per unit or distribution per unit for FY2025.

Units of CICT closed flat at S$2.15 on Friday.

Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

CapitaLand Integrated Commercial Trust S-Reits Singapore REITs

Reuse this content Feedback

TRENDING NOW

Handled passively, satellite connectivity becomes a service that the telco distributes, while somebody else sets the economics.

When every phone becomes a satellite phone, what happens to Asia’s telcos?

The company says the disputes do not cast significant doubt on its ability to continue as a going concern.

Koh Brothers Eco Engineering faces up to S$57.6 million in potential liabilities from legal disputes

Under the Philippines’ new policy, up to four EV models will be provided with as much as 15 billion pesos each in fiscal support, in the form of tax payment certificates.

Too little, too late? Manila’s billion-dollar bid to ignite its sputtering EV industry

The planned DayOne data centre is expected to be the city-state’s first to feature on-site solid oxide fuel cell power generation.

DayOne secures S$530 million green loan from DBS, OCBC and UOB for Singapore data centre