Top 10 Commercial Real Estate Deals of Early 2025
Early 2025 saw major real estate deals in Singapore across retail, hospitality, and alternatives.
Top 10 Commercial Real Estate Transactions in First Half of 2025
Commercial Capital Research • 15th May 2025
Early 2025 has witnessed significant movements in Singapore's commercial real estate capital markets. Below, we delve into the top ten transactions that have shaped the landscape, showcasing robust investor appetite across diverse asset classes, from prime retail and hospitality to strategic alternative investments.
1. Paragon REIT Privatisation: A S$2.8 Billion Retail Reshuffle
In a landmark move for Singapore's retail sector, Paragon REIT saw its privatisation approved by unitholders on April 22, 2025, valuing the trust at a substantial S$2.8 billion. The acquisition was spearheaded by Cuscaden Peak, a joint venture between Temasek-owned giants Mapletree and CapitaLand. This strategic takeover, which saw Cuscaden Peak consolidate its existing majority stake, is set to unlock significant capital for asset enhancement initiatives. A major focus will be the iconic Paragon Mall on Orchard Road, with S$300-S$600 million earmarked for its revitalisation. The portfolio also includes Clementi Mall in Singapore and a 50% interest in Westfield Marion Shopping Centre in Australia. This transaction is a key part of the broader unwinding of assets previously linked to Singapore Press Holdings (SPH), signaling a new chapter for these prime retail destinations.
2. Northpoint City Consolidation: Frasers Centrepoint Trust Takes Full Control for S$1.17 Billion
Frasers Centrepoint Trust (FCT) solidified its dominance in Singapore's suburban retail market by acquiring the remaining 50% stake in the south wing of Northpoint City for S$1.17 billion. Announced on March 25, 2025, this deal makes FCT the sole owner of the largest suburban mall in northern Singapore, located in Yishun. The seller was a trust jointly held by FCT's sponsor, Frasers Property, along with Thai billionaire Charoen Sirivadhanabhakdi and the estate of his late wife. This strategic acquisition is poised to strengthen FCT's portfolio and enhance its operational control over this key retail asset, reflecting continued strong investor belief in well-located suburban malls.
3. Bain Capital Bets Big on Worker Dormitories: S$750 Million Avery Lodge Portfolio Acquisition
Demonstrating growing institutional interest in alternative real estate asset classes, Bain Capital completed the acquisition of the Avery Lodge portfolio for S$750 million in the first quarter of 2025. This significant transaction involved a portfolio of four purpose-built worker dormitory compounds in Singapore, sold by dormitory firm Avery Lodge. The deal underscores the increasing attractiveness of specialized housing sectors that cater to essential workforce needs, offering stable income streams and diversification for large-scale investors like Bain Capital.
4. Prime Hospitality Shines: BlackRock and YTL Corp Acquire Citadines Raffles Place for S$280 Million
The hospitality sector saw a major boost with the announced sale of Citadines Raffles Place for S$280 million on May 2, 2025. The buyers, global investment giant BlackRock and Malaysian conglomerate YTL Corp, are acquiring the 299-unit serviced residence component within the prestigious CapitaSpring integrated development at 88 Market Street. The sellers are the joint venture partners CapitaLand Integrated Commercial Trust (CICT), CapitaLand Development, and Mitsubishi Estate. The deal, expected to close in Q2 2025, reflects an attractive exit yield of 3.6% for CICT and a price per key of S$936,455, with potential for conversion to a hotel.
5. Stamford Court Transformation: PGIM and Elevate Capital Invest S$132 Million for Mixed-Use Redevelopment
A joint venture between PGIM Real Estate and Elevate Capital Group acquired Stamford Court for S$132 million, with the completion reported in Q1 2025. Located at 61 Stamford Road in the vibrant City Hall area, the commercial building, sold by Singapore Land Group (SingLand), is slated for a significant transformation. The new owners plan to redevelop the property into a dynamic mixed-use hub featuring co-living spaces, co-working facilities, and engaging retail and F&B offerings, capitalizing on its prime location near Singapore Management University and other key attractions.
6. Record Shophouse Deal: Billionaire Leo KoGuan Acquires 21 Carpenter Hotel for S$100 Million
Singapore's shophouse market witnessed its largest-ever transaction by quantum with the S$100 million sale of the 21 Carpenter hotel. Acquired by billionaire Leo KoGuan through Timemerchant Capital in April 2025, the 48-room boutique hotel, part of the Autograph Collection, was sold by 8M Real Estate. Located in the historic Boat Quay area, this deal translates to a remarkable per-key price exceeding S$2 million, highlighting the premium placed on well-restored heritage assets in prime locations.
7. Raffles Place Strata Office Floors Fetch S$91.8 Million at 20 Collyer Quay
The strata office market saw a significant transaction in March 2025 with the sale of the top three floors (22nd-24th) at 20 Collyer Quay for S$91.8 million. This Grade A commercial building in the heart of Raffles Place achieved a price of S$3,148 per square foot for the 29,160 sq ft strata area. While the buyer was not specified in initial reports, the seller was implied to be the US law firm White & Case, which previously occupied the space. This deal underscores continued demand for high-quality strata office spaces in Singapore's CBD.
8. Duxton Reserve Hotel Changes Hands for Approximately S$80 Million
Adding to the string of hospitality deals, the Duxton Reserve Singapore, Autograph Collection hotel was reportedly sold for approximately S$80 million in early April 2025. While specific buyer and seller details were not immediately available in summary reports, this transaction further signals the renewed investor interest and capital flow into Singapore's hotel sector, driven by recovering tourism and strong market fundamentals.
9. Orchard Towers Retail Space Acquired by Cornerstone Community Church for S$54.5 Million
In a notable retail conversion deal, Cornerstone Community Church acquired two adjacent retail properties within Orchard Towers for S$54.5 million. The transaction, announced on February 1, 2025, and completed in Q1 2025, involves over 19,000 square feet of freehold space, formerly housing nightlife venues. The church plans to transform the space into a community hub, including a 550-seat auditorium. The deal, valued at S$2,825 per square foot, reflects adaptive reuse trends in the retail sector.
10. Geylang Redevelopment Site Secured by LHN-led Joint Venture for S$30 Million
A joint venture including LHN Group, Macritchie Developments, and DH Assets & Enterprises Pte Ltd secured an option to acquire a residential property at 30 and 32 Lorong 22 Geylang Road for S$30 million on February 14, 2025. The partners intend to redevelop the 1,179 square meter freehold site into a strata-titled commercial property. This deal highlights continued interest in redevelopment opportunities in city-fringe locations for commercial use.
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