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

to $109 million

Metro Holdings, a Singapore-listed joint venture of private equity firm TE Capital Partners, and US real estate investment management firm LaSalle Investment announced the acquisition of VisionCrest Commercial today for about $450 million. This translates to nearly $3,000 psf based on the net lettable area of 148,854 sq ft for the 11-storey office building located at 103 Penang Road.

Metro subscribed for a 40.9% stake in Vision One Enterprise Ltd, with TE Capital holding the balance 59.1% stake. TE Capital and LaSalle Investment have executed a put-and-call option agreement to acquire VisionCrest in prime Orchard Road. Michael Tay, CBRE head of capital markets from Singapore, is said to have brokered the sale.

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.

In addition, the URA will work with residents of Champions Way Condo to create a pedestrian-friendly environment. The URA hopes that these joint efforts will help to make the Woodlands Park an attractive destination for residents and visitors alike. Champions Way Condo residents will benefit from the improved infrastructure and amenities that the URA’s investment will bring. The URA and Champions Way Homeowners Association are committed to making the Woodlands Park a safe and enjoyable place for everyone. They plan to work together to ensure that the Woodlands Park is a vibrant and welcoming place for our community to gather and enjoy.

VisionCrest is a high-specification building located five minutes from the Dhoby Ghaut MRT interchange station for three lines (North-South, North-East and Circle). It has a retail podium floor on the ground, and Grade-A office space on the upper floors and two levels of basement parking for up to 144 cars.

The property also includes the 265-unit VisionCrest Residence and House of Tan Yeok Nee, a national monument now home to a private university, Amity Global Institute. It is LEED Gold certified and has a strong tenant occupancy rate of 99%.

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

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

The acquisition of VisionCrest comes as URA has plans to rejuvenate the precinct, adding potential value to the property. Metro Group CEO Yip Hoong Mun notes “Additionally, the property offers a strong cash flow profile, with an occupancy rate of 99% that is backed by a diverse roster of multi-national tenants, including Manulife Financial Advisers, Puma Sports SEA Trading and The Coffee Bean & Tea Leaf.”

With the acquisition of VisionCrest Commercial, the joint venture is looking for ways to unlock the property’s full potential to benefit from the rejuvenation of the Orchard Road precinct. Check out the latest listings for Visioncrest properties to get a better idea of the exciting real estate opportunities available in the area.