IOI Properties Group Berhad will acquire CapitaLand Integrated Commercial Trust’s (CICT) 100% interest in Asia Square Tower 2 for an agreed property value of $2.476 billion.
The sale was negotiated on a willing-buyer and willing-seller basis, and represents a $50 million discount to an independent valuation conducted by Savills on April 12, according to IOI Properties.
The put and call options agreement has been inked between HSBC Institutional Trust Services (Singapore), in its capacity as the trustee of CapitaLand Commercial Trust, a wholly owned sub-trust of CICT; and IOI Marina View, a wholly owned subsidiary of IOI Properties.
In a separate announcement on April 20, CICT, which has held this property for nine years, says it will book a net gain of $199.9 million from this sale.
The property “has consistently delivered healthy and stable operating performance, and has reached a mature phase in its property cycle, marking an opportune time to monetise the asset and crystallise value for unitholders”, says CICT in a bourse filing.
In contrast to IOI Properties, CICT cites a valuation report by Cushman & Wakefield, which values Asia Square Tower 2 at $2.252 billion as at Dec 31, 2025. This places the agreed property value at a 9.9% premium to valuation, according to CICT's bourse filing.
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The then-CapitaLand Commercial Trust acquired Asia Square Tower 2 from BlackRock in 2017 for $2.09 billion. CapitaLand Commercial Trust was merged with CapitaLand Mall Trust and renamed CICT in November 2020.
IOI Properties group CEO Lee Yeow Seng’s last major transaction in Singapore was to buy out City Developments’ 50.1% stake in South Beach Tower for RM2.75 billion ($834.22 million) in June 2025.
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Completed in September 2013, Asia Square Tower 2 is a premium Grade-A office asset with approximately 773,460 sq ft of net lettable area (NLA).
As at March 31, Asia Square Tower 2 has an average occupancy rate of 95.8%. Mizuho Bank, Mitsui Group and KPMG are key tenants of Asia Square Tower 2. The five-star luxury business hotel The Westin Singapore is also sited within the building.
The acquisition of Asia Square Tower 2 means Lee has gained control over a prime swathe of real estate between the parallel roads Shenton Way and Marina View.
Asia Square Tower 2 is directly linked to IOI Central Boulevard Towers via an elevated pedestrian bridge. The group’s luxury residential and hotel development W Residences Marina View – Singapore (currently under construction) is also situated nearby.
Meanwhile, Lee, in his personal capacity, bought the ageing adjacent Shenton House for $538 million in November 2023.
Lee calls Singapore a "cornerstone market" for the Bursa-listed company, due to its stable socio-political environment and strong global standing as a premier financial and business hub in South East Asia.
"Singapore attracts multi-national corporations, global institutions and top-tier talents, reinforcing its long-term economic resilience. This latest acquisition reflects IOIPG’s continued conviction in prime Singapore assets, which offer stable recurring income streams supported by strong market fundamentals.
"In particular, assets located within the Marina Bay precinct are well-positioned to benefit from sustained demand, limited supply, and ongoing urban transformation," says Lee.
According to IOI Properties, the enlarged Singapore office platform will allow the group to offer a diversified range of floor plate sizes to occupiers, ranging from approximately 15,000 sq ft at South Beach Tower to approximately 22,000 sq ft at IOI Central Boulevard Towers and approximately 30,000 sq ft at Asia Square Tower 2.
Collectively, IOI Properties says these assets under management will form a “critical mass” of premium commercial developments in Singapore valued at $10 billion, with NLA totalling 2.57 million sq ft.
With these three prime office properties here, IOI Properties will have greater heft to launch in 2027 what is likely to be its second REIT. On April 11, the company filed its draft prospectus for its REIT of Malaysia-based assets, seeking to raise some RM1.98 billion.
IOI Properties’ shares have risen some 47% year to date. CICT units are up less than 1% year to date.
