CICT To Ramp Up Singapore Property Acquisitions

CICT To Ramp Up Singapore Property Acquisitions

SINGAPORE – CapitaLand Integrated Commercial Trust’s (CICT) manager revealed that it may intensify the trust’s real estate acquisition activities for fiscal year 2022, particularly in Singapore, reported The Business Times on Friday morning (28 January, SGT).

“The next (property acquisition) opportunity that we’re looking at is Singapore and we’re assessing it quite closely. Our priority this year will be Singapore,” disclosed Tony Tan, CEO of CICT’s manager.

The real estate investment trust’s (REIT) property purchases this year may exceed its overall acquisition in FY2021, during which if picked S$740 million worth of assets.

After over a year of zero acquisitions following the merger between CapitaLand Mall Trust and CapitaLand Commercial Trust into CICT, the real estate investment trust (REIT) made its first acquisitions in Australia. There it bought one integrated project and 2 office buildings.

At the same time, CICT has been seen to be trimming its non-core Singapore properties. Last November, the trust announced the sale of its interest in the One George Street office building. Earlier this week, it revealed that it is unloading leisure and edutainment mall JCube in Jurong.

While Tan insisted that Singapore will remain key to the trust as it’s its home base, he said that CICT has been establishing “beachheads” in Australia and Germany to position for future growth opportunities.

“As a guide, we’re not going to go beyond 20 percent of our overall portfolio outside of Singapore,” he noted.

For FY2021, CICT recorded a portfolio occupancy of 93.9 percent. In particular, its office buildings were 91.5 percent occupied, mixed-use projects at 96 percent, while its retail space was 96.8 percent tenanted.

At the same time, the trust also leased 1.9 million sq ft of commercial space (both new leases and renewals). Major tenants which signed up in Q4 2021 and January 2022 include GIC and Sephora.

Looking ahead, Tan shared that CICT’s manager is cautiously optimistic in their prospects this year on the back of an improving market environment and the trust’s “resilient” portfolio operating metrics.

In particular, he is upbeat that CICT properties that have undergone asset enhancement initiative (AEI) like 21 Collyer Quay, as well as its CapitaSpring development and real estate recently acquired in Sydney to generate income from the H2 FY2022.

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