IOI Properties seals S$2.48b Marina Bay landmark deal, deepens Singapore office bet
KUALA LUMPUR: IOI Properties Group Bhd (IOIPG) is set to acquire CapitaLand Integrated Commercial Trust's (CICT) entire stake in Asia Square Tower 2 (AST2), a Grade A office landmark in Marina Bay, for S$2.476 billion, marking one of its most significant overseas real estate moves to date.
The acquisition reinforces IOIPG's strategy of building a stronger portfolio of high-quality, income-generating assets in leading gateway cities, as it positions itself to capture long-term demand for premium office space in Singapore's core financial district.
According to the group, the transaction was concluded on a willing-buyer, willing-seller basis, taking into account an independent valuation by Savills dated April 12, 2026. The agreed price reflects a S$50 million discount to the appraised market value, suggesting disciplined entry pricing for a prime-grade asset.
The deal was formalised through a put and call options agreement signed today between HSBC Institutional Trust Services (Singapore) Ltd in its capacity as the Trustee of CapitaLand Commercial Trust which is a wholly owned sub-trust of CICT, and IOI Marina View Pte Ltd, a wholly owned subsidiary of IOIPG.
IOIPG group chief executive officer Datuk Lee Yeow Seng said Singapore continues to be a cornerstone market for the group, supported by its stable socio-political environment and strong global standing as a premier financial and business hub in South East Asia.
"Singapore attracts multinational corporations, global institutions and top-tier talents, reinforcing its long-term economic resilience. This latest acquisition reflects IOIPG's continued conviction in prime Singapore assets, which offer stable recurring income streams supported by strong market fundamentals. In particular, assets located within the Marina Bay precinct are well-positioned to benefit from sustained demand, limited supply, and ongoing urban transformation."
AST2 comprises about 773,460 square feet of premium Grade A net lettable area (NLA), featuring large-format floor plates and seamless connectivity to key transport and lifestyle nodes.
The acquisition further strengthens IOIPG's presence within the CBD precincts, complementing its prime existing portfolio of IOI Central Boulevard Towers and South Beach Tower.
Collectively, IOIPG's Singapore assets under management are expected to form a critical mass of premium commercial developments valued at S$10 billion, all fully owned and controlled by the group.
With AST2 added to its portfolio, IOI Properties Singapore's total NLA of 2.57 million square feet is expected to strengthen IOIPG's recurring income base.
As at March 31, 2026, AST2 reported a strong average occupancy rate of 95.8 per cent, supported by resilient demand from global occupiers and a limited pipeline of new Grade A office supply in the CBD.
IOIPG said AST2 is well-positioned to deliver positive rental reversions and sustainable performance over time.
Operationally, IOI Properties Singapore will leverage its proven asset management capabilities at IOI Central Boulevard Towers and South Beach Tower to capture upcoming renewals, optimise operational performance, and drive long-term value.