CICT has partnered COREF to acquire 79 Robinson Road for SGD1.3b from Southernwood Property and will fund 70% of its interest of SGD869m by debt (62%) and divestment proceeds from JCube, implying a +2.9% DPU accretion. We are positive on the deal, against a strong office rental upcycle, and with the segment’s contribution rising to 41% (from 38%) of CICT’s enlarged SGD24.2b AUM. We see improving fundamentals ahead, with further acquisition upside, backed by its sponsor’s Singapore pipeline.
KE: CapitaLand Int. Comm. Trust – Buying Into An Upcycle (CICT SP, CP SGD2.23, BUY, TP SGD2.55, REITs)
