CapitaLand Trust to buy Paragon in S$3.9b deal, sells Asia Square Tower 2 for S$2.5b

The trust estimates a gain of nearly S$199.9 million after deducting divestment expenses from net proceeds, with the deal set to close in the second half of 2026.

In a separate announcement, the trust said it will acquire Paragon – an integrated development along Orchard Road comprising retail, office and medical suites – for nearly S$3.9 billion from Singapore’s state-owned investment firm Temasek.

The acquisition will be funded through a combination of debt, a S$600 million private placement, and proceeds from the sale of Asia Square Tower 2.

“This acquisition strengthens the resilience and quality of CICT’s Singapore‑focused portfolio, combining sizeable, upscale retail exposure with a defensive medical component, which is supported by strong structural tailwinds such as an ageing population and rising medical tourism,” said Mr Tan Choon Siang, CEO of the manager of CICT.