Cuscaden Proposes $2.78B Paragon REIT Buyout

Cuscaden Peak Investments, backed by Singapore's Temasek Holdings, has proposed a $2.78 billion buyout to privatize Paragon REIT, offering 98 cents per unit, representing a significant premium over the net asset value and market price. This move aims to facilitate a major renovation of Paragon Mall amid increasing competition from nearby retail developments, with renovation costs potentially reaching up to $600 million. The buyout proposal requires court approval and a vote by minority shareholders, as Cuscaden already holds a 61.5% stake. The deal provides an exit for investors from anticipated volatility associated with the renovation. The offer includes a dividend payout, and Paragon REIT is expected to be delisted by May. This strategic acquisition follows Cuscaden's previous purchase of Singapore Press Holdings’ REIT portfolio in 2022, further cementing its investments in upscale retail properties.