IOI Properties strengthens presence in Singapore’s CBD with acquisition of Asia Square Tower 2
PETALING JAYA: IOI Properties Group Bhd (IOIPG) will acquire CapitaLand Integrated Commercial Trust’s (CICT) 100% interest in Asia Square Tower 2 (AST2), a premium Grade A office asset located in the heart of Singapore’s Marina Bay financial district.
The agreed property value of S$2.476 billion (about RM7.7 billion) was negotiated on a willing-buyer and willing-seller basis after taking into consideration the independent valuation by Savills dated April 12, 2026. It represents a discount of S$50 million to the market value appraised by Savills.
In a statement today, IOIPG said the put and call options agreement was inked between HSBC Institutional Trust Services (Singapore) Limited 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 CEO Datuk Lee Yeow Seng said: “Singapore remains a cornerstone market for the group, underpinned by its stable socio-political environment and strong global standing as a premier financial and business hub in Southeast 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, he added, assets located within the Marina Bay precinct are well-positioned to benefit from sustained demand, limited supply, and ongoing urban transformation.
AST2 is a landmark development offering about 773,460 square feet of premium Grade A net lettable area, featuring efficient, large-format floor plates, best-in-class building specifications, and seamless connectivity to key transport and lifestyle nodes. Notably, the building is also directly linked to IOI Central Boulevard Towers via an elevated pedestrian bridge, enhancing interconnectivity acrossthe precinct and enabling greater integration within the group’s existing investment assets portfolio.
IOIPG said the acquisition strengthens its presence within the Central Business District (CBD) precincts, complementing its prime existing portfolio of IOI Central Boulevard Towers and South Beach Tower.
Collectively, these assets under management will form a critical mass of premium commercial developments valued at S$10 billion which are 100% owned and controlled by IOIPG in Singapore’s most prestigious business district. The addition of AST2 to the IOI Properties Singapore’s Property Investment portfolio totalling NLA of 2.57 million square feet, is expected to strengthen the group’s recurring income base.
As of March 31, 2026, the asset has an average occupancy rate of 95.8% and underpinned by resilient Singapore office demand from global occupiers as well as a constrained future pipeline of new premium office space in the CBD, AST2 is well-positioned to deliver positive rental reversions and sustainable performance over time.
Operationally, IOI Properties Singapore will leverage on 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.
The property’s adjacency to IOI Central Boulevard Towers and South Beach Tower, is expected to support portfolio clustering within the CBD and facilitate tenant expansion and operational synergies across the Group’s Singapore assets.
In addition, the enlarged Singapore office platform will allow the group to offer a diversified range of floor plate sizes to occupiers, ranging from about 15,000 sq feet at South Beach to about 22,000 sq feet at IOI Central Boulevard Towers and approximately 30,000 sq feet at Asia Square Tower 2.
With this expanded footprint, IOI Properties Singapore is uniquely positioned to drive greater synergy across its three business segments in the city republic while strategically enhancing its stable of matured commercial properties for sustained income and accelerating growth through calculated acquisitions during opportune times, leveraging on the republic’s urban renewal and decentralisation ofthe business districts towards a holistic lifestyle of live-work-play community within a thriving and dynamic environment.