News
CapitaLand Trust buys Paragon for S$3.9 billion, sells Asia Square Tower 2 for S$2.5 billion
AST2 has been sold to Malaysia's IOI Properties.
April 20, 2026, 11:55 AM
CapitaLand Integrated Commercial Trust (CICT) has sold Asia Square Tower 2 (AST2), an integrated development in the Marina Bay precinct, and will be buying Paragon mall, located along Orchard Road.
According to The Business Times (BT), CICT announced on Apr. 20 that it is buying Paragon mall for nearly S$3.9 billion from Singapore's state-owned investment firm Temasek.
Separately, CICT revealed that it has sold AST2 to Malaysia's IOI Properties for almost S$2.48 billion.
Sale of AST2
The divestment of AST2 represents a premium of almost 10 per cent above the property market's valuation of approximately S$2.25 billion as of Dec. 31, 2025, BT reported.
CICT said the tower has reached a mature phase in its property cycle, making it an opportune time to unlock value for unitholders.
After accounting for divestment-related costs, net proceeds are expected to come in at around S$2.45 billion, generating a net gain of approximately S$199.9 million.
Completion of the sale is anticipated in the second half of 2026.
Acquisition of Paragon
According to BT, CICT will acquire Paragon from a group of indirect wholly owned Temasek Holdings subsidiaries — comprising Cuscaden Peak, Cuscaden Peak Two, Times Properties, and Paragon Trust Management — at a net yield of 3.9 per cent.
CICT's chief executive Tan Choon Siang described the acquisition as a move that will strengthen the resilience and quality of the trust's Singapore-focused portfolio, citing Paragon's blend of upscale retail and medical offerings, as well as structural tailwinds from an ageing population and growing medical tourism.
The deal will be funded through a combination of debt, proceeds from the AST2 divestment, and a private placement launched on Apr. 20 is targeting to raise a minimum of S$600 million.
New units are reported to be offered to institutional and accredited investors at between S$2.292 and S$2.332 per unit, representing a discount of approximately 2.7 to 4.3 per cent to the volume weighted average price of S$2.3955 recorded on Apr. 17.
The Paragon acquisition is expected to be completed in the third quarter of 2026, subject to unitholder approval at an extraordinary general meeting.
Top photo from Google Maps
