Real Estate
Singapore’s CapitaLand to Sell Luxury ION Orchard Mall to REIT It Backs
- CICT is buying 50% stake in ION Orchard in main shopping area
- Sale is part of ‘asset-light’ strategy for CapitaLand
Outside ION Orchard mall on Orchard Road in Singapore.
Photographer: Ore Huiying/BloombergThis article is for subscribers only.
CapitaLand Investment Ltd. will sell its stake in one of Singapore’s most high-end malls to a real estate investment trust backed by the property company as it seeks to reduce assets on the balance sheet.
The deal will divest CapitaLand’s 50% interest in ION Orchard with a property value of about S$1.85 billion ($1.4 billion) to CapitaLand Integrated Commercial Trust. CapitaLand Investment has a 24% stake in the REIT, which is the city-state’s largest by market capitalization. The move is aimed at a “asset-light growth strategy,” the investment firm said in a statement Tuesday.