CICT Consortium Secures Hougang Central Mixed-Use Site: Major Expansion and Value Creation

Key Highlights for Investors

• CapitaLand Integrated Commercial Trust (CICT), together with CapitaLand Development (CLD) and UOL, has been awarded the coveted Hougang Central Government Land Sales (GLS) site for S\$1.5 billion, marking a landmark move into Singapore’s northeast region.
• CICT will develop and own 100% of the commercial component of this mixed-use project, with the residential portion being developed and sold by CLD and UOL in a 50:50 joint venture.
• This project will see the creation of approximately 300,000 sq ft of net lettable retail and lifestyle space—making it the largest mall in Hougang and a critical anchor for regional growth.
• The residential component will add about 830 units, further enhancing the catchment area and consumer base.
• Expected yield on cost for the commercial component is over 5%, which is attractive relative to recent market transactions.
• The development is seamlessly integrated with future and existing transport nodes, including Hougang MRT station, a new bus interchange, and a town plaza, with direct links to both the North-East and the upcoming Cross Island MRT lines (by 2030).
• CICT has emphasized disciplined capital management, with flexibility to fund the project through debt while maintaining prudent gearing levels. Total estimated development cost for the commercial component is S\$1.1 billion.
• Target completion is set for 2030/2031.

Strategic Implications

The acquisition is a significant milestone for CICT, reinforcing its dominant position in Singapore’s commercial real estate sector and extending its retail footprint into an underserved region. Hougang, with nearly 230,000 residents, ranks among Singapore’s most populous precincts, yet has only 2.8 sq ft of private retail space per capita—well below the national average of 11.4 sq ft. This indicates substantial untapped demand, making the site highly attractive for long-term growth and value creation.

By participating at the development phase, CICT not only secures an attractive entry yield but also gains the opportunity to influence the mall’s design, positioning, and leasing strategy from the outset. This proactive approach is expected to unlock value and capture Hougang’s growing consumer market, supported by neighbouring mature precincts such as Kovan, Punggol, Sengkang, and Serangoon.

Details of the Project

• Location: Hougang Avenue 10 / Hougang Central
• Land Use: Mixed-use development (commercial & residential) integrated with a new bus interchange
• Site Area: 504,820 sq ft
• Plot Ratio: 2.5
• Tenure: 99-year leasehold
• Estimated Net Lettable Area (Commercial): ~300,000 sq ft
• Total Development Cost (Commercial): S\$1.1 billion
• Yield on Cost (Commercial): Over 5%
• Target Completion: 2030 / 2031

Potential Price-Sensitive Information

• This is the first GLS parcel in Hougang since 2019, and will house the largest mall in the area. The scarcity and scale of the opportunity can be expected to drive significant market interest.
• Entry Yield: An expected yield on cost of over 5% for the commercial component is highly competitive and could enhance CICT’s income profile upon completion.
• Portfolio Expansion: This development cements CICT’s position as the proxy for commercial real estate in Singapore and demonstrates its ability to secure rare, well-located suburban assets at major transport nodes.
• Financial Flexibility: CICT’s ability to self-fund the project through debt if necessary, while maintaining prudent gearing levels, underscores strong balance sheet management.
• Market Positioning: The project leverages CapitaLand Group’s expertise in large-scale mixed-use developments, which has historically led to robust operational performance.

About the Consortium

CapitaLand Integrated Commercial Trust (CICT) is Singapore’s first and largest REIT, with a market capitalization of S\$18.2 billion as at 31 December 2025 and a portfolio valued at S\$27.0 billion. CICT is managed by CapitaLand Integrated Commercial Trust Management Limited, a subsidiary of CapitaLand Investment Limited (CLI), a leading global real asset manager with S\$120 billion under management as at November 2025.

CapitaLand Development (CLD) and UOL are established names with strong track records in quality residential and mixed-use developments. Their 50:50 joint venture for the residential component is expected to deliver high standards and further enhance the attractiveness of the site.

Conclusion

The award of the Hougang Central site is a major, potentially price-sensitive development for CICT and its shareholders. It signals the trust’s strategic expansion into a high-growth, underserved region, with an immediate opportunity to create long-term value through yield accretion and asset enhancement. Investors should closely monitor further updates on project milestones, tenant mix, pre-leasing, and construction timelines, as these will influence future income streams and asset valuation.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. The information contained herein is based on company disclosures and publicly available data as of the date of publication. Actual results may differ due to a variety of risks and uncertainties, including but not limited to economic conditions, regulatory changes, funding availability, and project execution. Investors are advised to conduct their own due diligence and consult professional advisors before making investment decisions.

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