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CICT
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sgwealthbuilder
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18-Jan-2026 13:57
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https://sgwealthbuilder.com/2026/01/13/cict-share-price-hit-5-year-high/
Among the S-REITs, Keppel REIT recently caused a stir in the investment community when it announced acquisition of an additional one-third stake of Marina Bay Financial Center (MBFC) Tower 3 from Hong Kong Land for a whopping $1.45 billion. To support that acquisition, Keppel REIT has launched a mega Equity Fund Raising (EFR) of $886.3 million. Due to the size of the acquisition cost and the EFR, questions abound among unitholders if Keppel REIT has shot itself in the foot and bitten off more than it could chew instead. This is because the transaction is expected to be both DPU and unit price dilutive. Over at CICT, the S-REIT had acquired remaining 55% of CapitaSpring in August 2025. To fund the acquisition, CICT launched private placement to raise proceeds of $600 million at issue price of $2.11 per new unit. I really like this acquisition as it strengthened CICT&rsquo s leadership position in the commercial Grade A office sector. I also like the fact that this acquisition will increase the S-REIT to Singapore&rsquo s exposure from 94% to 95%, consolidating its profile as a Singapore-centric S-REIT. This acquisition is also DPU accretive. Additionally, the fact that CICT share price continued to rise after the acquisition reflected investors&rsquo confidence in the counter. The acquisition of CapitaSpring came at the backdrop of tightening supply pipeline of Grade A offices in Singapore&rsquo s Downtown Core &ndash only Shaw Tower in Beach Road and Newport Tower in Anson Road are slated for completion in 2026 and 2027, respectively. In fact, recent 90% occupancy of IOI Central Boulevard Towers, a Grade A commercial building, reflects healthy demand for office spaces in Singapore&rsquo s CBD. The tight supply pipeline, coupled with foreseeable interest rate cuts on the horizon, has led to a &ldquo flight to quality&rdquo trend, leading to 2.5% increase in office rental in the city area. Vacancy for office rentals consequently eased to 11.2% from 11.4% in the second quarter. https://sgwealthbuilder.com/2026/01/13/cict-share-price-hit-5-year-high/ |
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