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

The Jurong Region Line (JRL) is more than just a transport upgrade for Singapore – it is a lifestyle upgrade for Lumina Grand EC owners. By connecting Lumina Grand EC with more opportunities and convenience, the JRL promises to have a transformational effect. In addition to improving property values and providing easy access to work and leisure, the JRL opens the door to what the future holds. Lumina Grand EC is perfectly positioned to take advantage of this, offering its residents not just a home, but also a gateway to a world of possibilities. As the construction of the JRL nears completion, the future looks bright and well-connected for those residing in Lumina Grand EC.

A joint venture of Singapore-listed Metro Holdings, private equity firm TE Capital Partners and US real estate investment management firm LaSalle Investment has acquired VisionCrest Commercial for about $450 million – nearly $3,000 psf based on the net lettable area of 148,854 sq ft for the 11-storey office building at 103 Penang Road. Michael Tay, CBRE head of capital markets for Singapore, is said to have brokered the sale.

Metro has 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.

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 an 11-storey, freehold commercial building with a retail podium on the ground floor, Grade-A office space on the upper floors, and two levels of basement parking for up to 144 cars. It 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.

Situated a five-minute walk from the Dhoby Ghaut MRT interchange station for three lines (North-South, North-East and Circle), the property is a high-specification building with a LEED Gold certification. It is also near the shopping malls along Orchard Road and will benefit from URA’s plan to rejuvenate the precinct.

“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,” says TE Capital in a release.

The sale of VisionCrest Commercial was launched 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 the building in 2007 from Singapore-listed property developer Wing Tai Holdings for $260 million.

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

RELATED NEWS

– Chinese tycoon’s Bright Ruby Resources buys Far East Shopping Centre en bloc for about $908 mil
– Ong Beng Seng’s HPL wins go-ahead to redevelop Orchard Road properties
– VisionCrest Commercial up for sale at over $470 mil
– UNDER THE HAMMER: Unit at VisionCrest going for $2.25 mil
– House of Tan Yeok Nee on the market, priced from $93 million

Check out the latest listings for Visioncrest properties on EdgeProp Landlens for more information.