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CICT to Buy Paragon for S$3.9 Billion and Sell Asia Square Tower 2 to IOI for Up to S$2.5 Billion

The pivot concentrates the Singapore REIT on higher‑yield retail alongside healthcare assets.

Overview

  • CICT, which unveiled the reshuffle Monday, will acquire the Paragon mall‑and‑medical complex for about S$3.9 billion and sell Asia Square Tower 2 to Malaysia’s IOI Properties for about S$2.48–S$2.5 billion.
  • The manager said the move shifts the portfolio toward steadier income from Orchard Road retail alongside healthcare suites next to the Mount Elizabeth medical cluster.
  • The Paragon purchase will be funded with a S$600 million private placement, new debt, and proceeds from the Asia Square Tower 2 divestment.
  • CICT projects a 2.1% increase in investor payouts to 11.83 cents per unit from 11.58 cents, and says the office‑tower sale should crystallize about S$199.9 million in gains after costs.
  • Two independent valuers put Paragon at S$3.895–S$3.905 billion, and both transactions are targeted to close in the second half of 2026 subject to IOI shareholder approval and other customary conditions.