CICT announced, on Sept 3, that it is proposing to acquire CLI’s 50% stake in ION Orchard at an agreed-upon property price of $1.85 billion, which implies a price of $5,928 per sq ft on a net lettable area (NLA) basis.
DBS Group Research analysts Derek Tan and Geraldine Wong see that Paragon REIT could be acquired by CapitaLand Investment’s (CLI) ecosystem of fund partners, other consortium partners or third parties who may be interested in gaining a foothold within the prime Orchard Road belt.
“While the market expects Paragon REIT to be an acquisition target for CapitaLand Integrated Commercial Trust (SGX:C38U
) (CICT), the capital allocated for ION Orchard could potentially mean that Paragon REIT’s suitor could be elsewhere,” the analysts write in their Sept 26 report.
