CapitaLand Integrated Commercial Trust (CICT) agreed on 20 April to buy Paragon, a freehold integrated development on Orchard Road comprising retail space, offices and medical suites, for an agreed property value of S$3.9bn.
Why CapitaLand Integrated Commercial Trust is buying Paragon (Orchard Road)
CICT's manager said Paragon combined upscale retail with a defensive medical component supported by an ageing population and medical tourism, and that recycling capital from Asia Square Tower 2, sold at a 3.0% exit yield, into a 3.9%-yielding freehold asset would be accretive to distribution per unit.
“Paragon is a rare, premier freehold integrated development in the heart of Orchard Road.”
Deal terms and financing
The agreed value was the average of independent valuations of S$3,895m by Knight Frank and S$3,905m by Cushman & Wakefield. The total outlay of about S$3.92bn is to be funded through debt, a private placement and the net proceeds of the S$2.476bn sale of Asia Square Tower 2 to IOI Marina View, with a bridging loan if Paragon completed first. Pro forma aggregate leverage was put at 39.2%.
Regulatory approvals and timing
Because the vendors were linked to CICT's sponsor group, the purchase was an interested-party transaction requiring unitholder approval at an extraordinary general meeting. CICT announced completion of the acquisition on 1 July 2026, according to an SGX filing of that date.
Market context
The vendors were Cuscaden Peak Pte. Ltd., Cuscaden Peak Two Pte. Ltd., Times Properties Private Limited and Paragon Trust Management Pte. Ltd. Together with the Asia Square Tower 2 sale, the two transactions totalled roughly S$6.4bn.
