CICT announces fourth acquisition in three months, CapitaLand Investment benefits

Goola Warden
Goola Warden3/30/2022 04:11 PM GMT+08  • 5 min read
CICT announces fourth acquisition in three months, CapitaLand Investment benefits
CICT acquires 79 Robinson Road with debt and proceeds from JCube. The property which has a yield of 4%, has a short land lease
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On March 25. the manager of CapitaLand Integrated Commercial Trust (CICT) announced it was jointly acquiring buying 79 Robinson Road with CapitaLand Open End Real Estate Fund (COREF), a newly established discretionary fund managed by CapitaLand Investment (CLI), for $1.26 billion or $2,423 psf. The consideration is in line with independent valuations, says CICT’s manager. CICT will hold 70% and COREF 30%.

The property has a net property income (NPI) yield of 4.0%, based on pro forma annualised NPI for January. The transaction is expected to be completed in 2Q2022. CICT’s total outlay will be $869.2 million including fees and expenses of $14.1 million.

Although the acquisition of CLI's 35% stake in 79 Robinson Road is an interested party transaction (IPT), the value of its IPT as a percentage of CICT's net tangible asset is below 5%, the threshold at which it would require unitholders’ approval.

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