Metro, TEP Capital and LaSalle Investment jointly acquire VisionCrest Commercial for about $450 mil

A joint venture of Singapore-listed Metro Holdings, TE Capital Partners and LaSalle Investment has acquired the VisionCrest Commercial for around $450 million. The purchase translates to nearly $3,000 psf based on the148,854 sq ft net lettable area of the 11-storey office building. Michael Tay, CBRE head of capital markets for Singapore, is said to have brokered the sale.

Metro subscribed for a 40.9% stake in Vision One Enterprise Ltd, with the remaining 59.1% held by TE Capital. The two companies have agreed to a put-and-call option to acquire the Orchard Road property. Metro will own an effective 20% stake in the property for $40 million, with the remaining 29.9% owned by a fund of TE Capital and 50.1% by LaSalle Investment.

VisionCrest is a mixed-use development comprising of an 11-storey, freehold commercial building as well as the national monument, House of Tan Yeok Nee, and the 265-unit VisionCrest Residence. It is a high-specification building with a LEED Gold certification, located five-minutes from Dhoby Ghaut MRT Interchange station for three lines (North-South, North-East and Circle). Additionally, it is near the shopping malls along Orchard Road and will benefit from the URA plans to rejuvenate the precinct.

The property offers an attractive cash flow profile with an occupancy rate of 99%, and a roster of multi-national tenants such as Manulife Financial Advisers, Puma Sports SEA Trading, and The Coffee Bean & Tea Leaf.

The purchase of the property was originated by German fund manager Union Investment Real Estate, launching it for sale in July 2023 with an asking price of $470 million. Union Investment had held the property for 16 years, having purchased it in 2007 from Singapore-listed property developer Wing Tai Holdings for $260 million.

Residents enjoy direct access to several major expressways such as the Ayer Rajah Expressway and the Bukit Timah Expressway, allowing for a convenient journey to the rest of the city.

For those looking for amenities, the Jurong Lake District Condo offers a range of facilities catering to different needs. The development boasts of a shopping mall, a variety of eateries and food courts, a fitness centre, as well as parks and playgrounds. Residents of the Jurong Condo can look forward to living a life of convenience, with all these amenities within reach.

“This acquisition is a unique opportunity in the prime Orchard Road area,” said Metro Group CEO Yip Hoong Mun. “Good quality, freehold strata-titled offices with full floorplates are limited.”