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PETALING JAYA (April 20): IOI Properties Group Bhd (IOI Properties) last Friday announced that it 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, for an agreed property value of S$2.476 billion (RM7.71 billion).
The agreed property value was negotiated on a willing-buyer and willing-seller basis after taking into consideration the Independent Valuation by Savills dated April 12, this year and represents a discount of S$50 million to the market value appraised by Savills.
The put and call options agreement was inked last Friday (April 17) 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.
With the acquisition of AST2, IOIPG will expand its 100% owned and controlled property investment assets under management (AUM) in Singapore to S$10 billion and cement its standing as a major landlord in Singapore’s Central Business District (CBD). Collectively, IOIPG’s enlarged Singapore portfolio — comprising AST2, IOI Central Boulevard Towers and South Beach Tower — will have a total net lettable area (NLA) of 2.57 million square feet.
IOI Properties chief executive officer 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 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 is a landmark development offering approximately 773,460 sq ft 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 across the precinct and enabling greater integration within the group’s existing investment assets portfolio.
The acquisition further strengthens IOI Properties’ presence within the CBD precincts, complementing its prime existing portfolio of IOI Central Boulevard Towers and South Beach Tower. Collectively, these assets under management, valued at S$10 billion and 100% owned and controlled by IOIPG, form a critical mass of premium commercial developments in Singapore’s most prestigious business district.
The addition of AST2 to the IOI Properties Singapore 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, AST2 has an average occupancy rate of 95.8%. 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 approximately 15,000 sq ft at South Beach to approximately 22,000 sq ft at IOI Central Boulevard Towers and approximately 30,000 sq ft 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 island republic while strategically enhancing its stable of mature commercial properties for sustained income and accelerating growth through calculated acquisitions during opportune times.
The group will continue to leverage on the republic’s urban renewal and decentralisation of business districts towards a holistic lifestyle of live-work-play community within a thriving and dynamic environment.
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