CICT and its joint venture partners have successfully divested the 299-unit Citadines Raffles Place serviced residence for $280 million, exceeding its previous valuation of $278.8 million as of the end of 2024. This strategic divestment reflects a well-calibrated approach to capital management, allowing CICT to reposition its portfolio towards more lucrative opportunities that can enhance distribution per unit (DPU). The sale aligns with CICT’s ongoing strategy to maximize returns and optimize asset allocation.
The Citadines Raffles Place, which began operations in February 2022, is situated within the CapitaSpring integrated development at 88 Market Street in Singapore’s Downtown Core. This prime location is strategically beneficial, as it caters to both business and leisure travelers in a bustling urban environment. The property has been designed to meet the demands of modern living, offering a range of amenities and services that appeal to a diverse clientele.
The successful divestment signifies not just a financial transaction but also the culmination of a vision to create a distinctive hospitality experience in one of Singapore’s most sought-after locations.
CICT holds a 45% stake in the joint venture, with CapitaLand Development and Mitsubishi Estate Asia owning 45% and 10%, respectively. The collaborative nature of the partnership has allowed for a more extensive reach in terms of market insights and operational efficiencies. The exit yield from the sale is approximately 3.6%, reflecting a robust return on investment and underscoring the property’s appeal within the serviced residence market.
This yield indicates that the divestment was executed at a favorable time, capitalizing on the increasing demand for serviced accommodations in urban centers.
With the transaction expected to be completed by the second quarter of 2025, CICT is poised to utilize the proceeds to invest in other DPU-accretive opportunities, further strengthening its financial position. The emphasis on capital redeployment is a central theme in CICT’s strategy, ensuring that the organization remains agile in a competitive market.
The divestment of Citadines Raffles Place not only demonstrates CICT’s commitment to maximizing shareholder value but also reflects its proactive approach to asset management amidst evolving market conditions.
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River Green is an exciting new condo launch in Singapore, showcasing a variety of unit types from one to four-bedroom layouts, appealing to a wide range of buyers.
Designed with sustainability in mind, this development offers eco-friendly features and exclusive facilities such as a swimming pool and gym.
The strategic location enhances connectivity to major transport hubs and nearby shopping and dining options.
For detailed River Green project information, including floor plans and pricing, interested buyers can explore the River Green e-brochure.
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News Source: Edgeprop
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