CapitaLand Integrated Commercial Trust - RHB Invest 2024-09-04: Proposes To Acquire Ion Orchard

• We are neutral on CapitaLand Integrated Commercial Trust’s proposal to acquire a 50% stake in the shopping mall ION Orchard and ION Orchard Link (both termed under “ION Orchard” in this report), as the pricing is slightly on the higher end.
• - Read this at SGinvestors.io -

CICT to acquire 50% stake in ION Orchard for S$1.85bn

• CapitaLand Integrated Commercial Trust (CICT, SGX:C38U) has entered into an agreement to acquire a 50% stake in ION Orchard for S$1.85bn (S$3.7bn on a 100% basis) from its sponsor, CapitaLand Investment (SGX:9CI). The remaining 50% stake is held by the Hong Kong developer, Sun Hung Kai Properties. See CapitaLand Integrated Commercial Trust's announcement dated 03 Sep.
  • - Read this at SGinvestors.io -
  • Gross yield (1H) for the deal is ~7.1%, and we estimate NPI yield to be in the mid-4% range.
• The iconic high-end mall has a balance lease of 81 years and sits on top of the Orchard MRT station, and houses various top brands. The committed occupancy rate is at ~96%, while management guided for rent reversions to be in high single digits – similar to that of its other downtown Singapore malls.
• The acquisition will strengthen CapitaLand Integrated Commercial Trust’s Singapore focus, which investors are likely to view favourably. Downtown malls (by NLA) will account for 57% of its Singapore retail exposure, from 52%.

To be funded by a majority of equity

• Read more at SGinvestors.io.

Above is an excerpt from a report by RHB Securities Research.
Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.

Read also RHB's most recent report:
2025-04-25 CapitaLand Integrated Commercial Trust - Flight-To-Quality To Continue; BUY.

Previous report by RHB:
2025-02-06 CapitaLand Integrated Commercial Trust - Making Steady Progress; BUY.

Price targets by other brokers at CapitaLand Integrated Commercial Trust Target Prices.

Listing of research reports at CapitaLand Integrated Commercial Trust Analyst Reports.

Relevant links:
CapitaLand Integrated Commercial Trust Share Price History,
CapitaLand Integrated Commercial Trust Announcements,
CapitaLand Integrated Commercial Trust Dividend Payout Dates & Corporate Actions,
CapitaLand Integrated Commercial Trust News