CICT’s proposed acquisition of stake in Ion Orchard ‘opportune’; S-Reits expected to make more buys

THE proposed acquisition of a 50 per cent stake in Ion Orchard, one of Singapore’s largest malls, by , comes at an “opportune time” – ahead of potential rate cuts and an improving market appetite for equity fund-raising.

Analysts say that the transaction, which amounts to S$1.85 billion based on 50 per cent of the agreed property value, also marks the start of more such transactions among Singapore-listed real estate investment trusts, or S-Reits.

“We expect more transactions, including both acquisitions and divestments, in the coming months as interest rates decline,” said Darren Chan, a senior research analyst at Phillip Securities Research.