CapitaLand Investment to divest 50% stake in ION Orchard to CICT

It will have recycled $3.6b in capital year-to-date following the divestment.

CapitaLand Investment Limited (CLI) will divest its 50% stake in ION Orchard to CapitaLand Integrated Commercial Trust (CICT), its sponsored real estate investment trust (REIT).

Sun Hung Kai Properties (SHKP) holds the remaining 50% stake in ION Orchard.

In a bourse filing, CLI said it would fully subscribe to its pro-rata entitlement in the preferential offering to help fund CICT's purchase of ION Orchard. CLI’s stake in CICT stood at 24% as of 30 June 2024.

CLI will use proceeds from the divestment to further diversify its portfolio across geographies and asset classes and establish new fund products to boost its fee-related income.

Following the completion of the divestment, CLI will have recouped approximately $3.6b year-to-date, surpassing its annual capital recycling target of $3b.