Plans for Paragon AEI ‘well advanced’ before ‘unsolicited’ CICT offer: Cuscaden Peak
CICT’s bid was ‘considered carefully’, taking into account Paragon’s long-term needs
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[SINGAPORE] Plans for a major asset enhancement initiative (AEI) at Paragon were “well advanced” when an “unsolicited” offer for the mall came from CapitaLand Integrated Commercial Trust (CICT) in early 2026, Cuscaden Peak disclosed on Friday (Apr 24).
In a statement sent on Friday evening, the Temasek-backed real estate company defended the proposed S$3.9 billion sale, which came a little over a year after Cuscaden Peak took Paragon Real Estate Investment Trust (Reit) private to shield public unitholders from the AEI’s significant scale and execution risks.
The status of the AEI has also come into question after CICT said it intends to undertake its own evaluation of asset enhancement opportunities for the mall, subject to its internal processes and approvals.
Following the delisting of Paragon Reit, Cuscaden Peak said that its preparations for the AEI had accelerated significantly. The indicative capital expenditure for the AEI was in the range of S$300 million to S$600 million, depending on the eventual scope and design, the company said.
Initial reviews indicated that the project could take three to four years to complete, with potential timeline extensions subject to regulatory approvals and construction delays.
Several reputable architectural firms were engaged to put forward design concepts, with discussions advancing to detailed design proposals, Cuscaden Peak said, and regulatory authorities engaged. A leading luxury mall operator was also roped in to explore concepts to enhance Paragon’s retail offering, and professional advisers were appointed to assist with costing.
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Despite the extensive groundwork, Cuscaden Peak’s board ultimately decided to accept CICT’s “unexpected” offer in accordance with its governance framework.
The company noted that the bid was “considered carefully... taking into account both Cuscaden Peak’s strategic priorities and Paragon’s long-term needs, the substantial AEI preparation work already undertaken, the expected AEI timeline and the associated risks”.
It also clarified that the proposed S$3.9 billion transaction value relates to Paragon on a freehold basis, encompassing both the 99-year leasehold interest formerly held by Paragon Reit and the reversionary freehold title held by Cuscaden Peak.
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Consequently, this freehold transaction value is not directly comparable to the leasehold valuation used during the 2025 privatisation, it added.
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