Hines Buying Singapore Mall From CapitaLand REIT for $332M

CapitaLand Integrated Commercial Trust has agreed to sell a northwestern Singapore mall for S$428 million ($332.4 million), with market sources confirming US developer and fund manager Hines as the buyer.

The largest REIT on the Singapore Exchange is divesting its 90 strata lots in Bukit Panjang Plaza at a 10 percent premium to an independent valuation of S$389 million at the end of 2025, CICT’s manager said Wednesday in a release. The REIT’s precursor CapitaMall Trust had acquired the 1998-built suburban shopping centre in stages from Temasek-owned developer CapitaLand in 2003 and 2007.

JLL advised CICT on the deal after marketing Bukit Panjang Plaza since the early months of 2024, when the trust was reportedly seeking S$470 million for the property. Houston-based Hines had not commented on the deal at the time of publication.

“The sale of Bukit Panjang Plaza is part of our portfolio reconstitution strategy to optimise our portfolio, strengthen CICT’s financial flexibility for growth and create value for our stakeholders,” said Tan Choon Siang, executive director and CEO of the manager, a unit of SGX-listed CapitaLand Investment.

Near Transport Hub

Located at 1 Jelebu Road in the residential area of Bukit Panjang, the four-storey mall sits next to the Bukit Panjang Integrated Transport Hub, a key interchange of MRT, light rail and bus services. The complex serves the surrounding estates and the residents of Teck Whye, Choa Chu Kang and Upper Bukit Timah.

The disposal property is on a 99-year lease from December 1994 and comprises 164,500 square feet (15,283 square metres) of net lettable area, translating to S$2,602 ($2,021) per square foot at the agreed price.

After taking into account sale-related expenses and completion adjustments, the net proceeds from the sale are estimated at S$421.2 million, according to CICT. The exit yield is around the mid 4 percent level, with the transaction expected to close during the first quarter of this year.

“The sale is part of CICT’s broader portfolio reconstitution strategy, where asset divestments may be considered to enable capital redeployment into potential growth opportunities, or other strategic purposes,” the manager said.

Portfolio Evolves

CICT in October reported that its net property income for the first nine months of 2025 inched up 0.2 percent to S$874.2 million after the disposal of 21 Collyer Quay one year earlier.

Adjusted for disposal of the Raffles Place office building, net property income was up 1.4 percent for the period as gross revenue rose 1.2 percent to S$1.2 billion on the same basis.

CICT said it began realising income contribution on a 100 percent basis from CapitaSpring on 26 August 2025, following the REIT’s S$1.05 billion buyout of the commercial component of the 51-storey downtown tower.