One of Asia’s largest real estate players, CapitaLand Integrated Commercial Trust (CICT), has announced the acquisition of full ownership of one of Singapore’s most iconic properties — the CapitaSpring skyscraper. According to the company, the deal was completed in the first half of 2025 and stands out as one of the largest corporate transactions in the region’s commercial property sector this year.
Market Significance of the Deal
Located in the Raffles Place business district, CapitaSpring is a 280-meter mixed-use skyscraper that combines office, residential, and retail spaces, along with public amenities. The project was completed in 2021 in partnership with several investors, and until recently CICT held a partial stake, sharing ownership with overseas investment funds.
Following the buyout of all remaining shares, CICT is now the sole owner and operator of the property. According to management, this will allow greater flexibility in asset management, cost optimization, and strategic development of the complex.
“CapitaSpring is not just a building — it’s a symbol of the next generation of mixed-use developments in Singapore. Full control gives us the ability to maximize long-term value creation for both tenants and investors,” said CICT’s Chief Executive Officer.
Financial Details
While the full financial terms were not officially disclosed, analysts estimate the transaction to be worth around €780–800 million, based on the property’s market value and current yields in Singapore. The acquisition was funded through a mix of bank loans and the trust’s internal resources.
Preliminary projections suggest that taking full control of CapitaSpring could increase CICT’s net operating income by 5–7% over the next two years through rental optimization and higher occupancy rates.
Property Features
CapitaSpring offers more than 93,000 square meters of floor space, divided as follows:
- 69% — premium-grade office space.
- 20% — retail and dining areas.
- 11% — residential units for both short- and long-term rental.
The building has achieved the highest environmental sustainability ratings — Green Mark Platinum and LEED Platinum — thanks to its energy-efficient systems and green integrations, including a “sky garden” on the 51st floor.
“CapitaSpring has become a benchmark for sustainable design in Asia. Its architectural and engineering solutions balance tenant comfort with minimal environmental impact,” said the project’s lead architect.
Singapore’s Commercial Real Estate in 2025
Singapore remains one of Asia’s most resilient commercial real estate markets. According to Jones Lang LaSalle, in the first half of 2025, average rental rates for Grade A offices in the central business district rose by 3.2% year-on-year, reaching €91–94 per square meter per month.
The growth is driven by limited new supply and strong demand from multinational corporations, particularly in the financial and tech sectors. In this context, owning a trophy asset like CapitaSpring provides a strategic competitive edge.
Strategic Rationale
Analysts say the buyout of the remaining stake in CapitaSpring was a logical move for CICT, given:
- The property’s above-average yield compared to peers.
- Long-term lease agreements with multinational tenants.
- Opportunities to increase revenue through retail space optimization.
“Owning 100% of the asset allows for faster decision-making on upgrades, redevelopment, and lease policy adjustments without partner approval,” noted a Singapore-based real estate analyst.
Tenant Response
According to CICT’s management, tenants have responded positively to the change in ownership structure. The unified ownership is expected to speed up layout change approvals and the rollout of additional services for office occupants and apartment residents.
Some tenants have expressed hopes for expanded public areas and an enhanced dining cluster on the lower floors.
Development Plans
Over the next 3–5 years, CICT plans to:
- Reconfigure part of the office floors into flex office formats.
- Expand the food hall and retail areas.
- Integrate additional digital services for lease management.
- Develop further sustainability initiatives, including rainwater harvesting systems and rooftop solar panels.
Such changes could boost rental income by an estimated 8–10% by 2030.
Impact on CICT’s Portfolio
CapitaSpring will now become one of CICT’s largest assets, accounting for around 12% of the trust’s total portfolio value. This strengthens the company’s position in the premium commercial real estate segment and improves portfolio stability through long-term tenants.
The acquisition also aligns with CICT’s strategy of focusing on high-yield assets in Singapore and other key Asian markets.
Conclusion
Gaining full ownership of CapitaSpring is a strategic milestone for CapitaLand Integrated Commercial Trust, reinforcing its position in one of Asia’s most prestigious property segments.
With resilient demand for premium office and retail space in Singapore, combined with the growing appeal of sustainable developments, the deal is well-positioned to deliver long-term benefits and strengthen CICT’s competitive standing in the regional market.
For market observers, the move confirms CICT’s status as a leading institutional player capable of setting quality and innovation benchmarks in Singapore’s real estate sector.
