CapitaLand, IOI Properties in talks for near S$2.4B One Raffles Place deal
CapitaLand Investment and IOI Properties are planning a joint venture to acquire One Raffles Place, one of Singapore’s tallest towers. The complex, valued at about S$2.37 billion, comprises two office towers and a retail mall in the central business district. UOB is expected to retain its current sp
CapitaLand Investment and Malaysian billionaire brothers’ IOI Properties are reportedly close to a deal to acquire One Raffles Place, one of Singapore’s tallest towers, in a transaction valued at nearly S$2.4 billion. The two companies are planning to establish a joint venture to finalise the acquisition, according to Bloomberg, citing people familiar with the matter.
Located in Singapore’s central business district, One Raffles Place comprises two office towers of 62 and 38 floors, along with a six-level retail mall. The complex has more than 65,000 square metres of gross leasable area and rises 280 metres, making it one of the city-state’s tallest buildings.
The sellers are OUE REIT, a real estate investment trust backed by Indonesia’s billionaire Riady family, and United Overseas Bank (UOB). OUB Centre holds an 81.54% stake in the building, while UOB owns the remaining 18.46%. OUE REIT indirectly controls 83.33% of OUB Centre through wholly owned subsidiaries, giving it a 67.95% interest in the building, according to The Business Times. The property is estimated to be worth S$2.37 billion based on the valuation of the REIT’s stake at the end of last year.
UOB, one of Singapore’s biggest lenders, is expected to retain the space it currently occupies following the sale, one of the sources said. The buyers are also considering partially redeveloping the complex. Earlier reports said father-and-son billionaire duo Raj Kumar and Kishin RK were also among the parties interested in the property.
The potential sale comes as Singapore’s commercial property market is heading for a record year, with deals totalling US$10.3 billion in the first half of 2026, according to global index provider MSCI. Property consultancy Knight Frank said prime office properties remain attractive to investors because of their reliable rental income, while limited availability of high-quality space in the central business district is providing further support, as quoted by EdgeProp Singapore.
CapitaLand Investment is an asset manager backed by Singapore state-owned investor Temasek. IOI Properties, controlled by brothers Lee Yeow Chor and Lee Yeow Seng, has been acquiring properties to bolster its presence in Singapore. In April, it agreed to buy Asia Square Tower 2 in the Marina Bay district for about US$1.95 billion from a REIT backed by CapitaLand Investment. It also secured regulatory approval in Malaysia earlier this month to establish and list IOIPG Malaysia Real Estate Investment Trust, backed by RM7.58 billion (US$1.85 billion) in assets.
