CapitaLand Integrated Commercial Trust (CICT) announced that they would be buying 50% of ION Orchard for $1.8 billion this week.
The acquisition would be funded entirely by equity fundraising – to the tune of $1.1 billion.
$1.1 billion, that’s A LOT of money to be raising in this climate.
Now CICT is my largest REIT position in my portfolio.
And I’ve been getting a lot of questions about this acquisition.
3 key questions I wanted to discuss:
- Is this a good acquisition for CICT?
- Will I subscribe for the preferential offering?
- Will I buy more CICT at 5.3% dividend yield?
CICT buys Ion Orchard for $1.8 billion
Full
acquisition announcement here, but to sum up the
key details:
- CICT is buying 50% of ION Orchard from its sponsor CapitaLand Investments (CLI).
- The other 50% will be held by Sun Hung Kai Properties – “a leading property developer and operator in Greater China renowned for premium large scale integrated developments”.
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