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

Singapore-listed Metro Holdings, private equity firm TE Capital Partners and US real estate investment management firm LaSalle Investment have jointly acquired VisionCrest Commercial for approximately $450 million.

This acquisition is a unique opportunity in the prime Orchard Road area, according to Metro Group CEO Yip Hoong Mun, who said the purchase also offers a strong cash flow profile, with an occupancy rate of 99%, backed by a diverse roster of tenants including Manulife Financial Advisers, Puma Sports SEA Trading and The Coffee Bean & Tea Leaf.

Michael Tay, CBRE head of capital markets for Singapore, is said to have brokered the sale. The purchase price translates to nearly $3,000 psf based on the net lettable area of 148,854 sq ft for the 11-storey office building situated at 103 Penang Road.

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

The property 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.

VisionCrest was launched for sale by German fund manager Union Investment Real Estate in July 2023. The asking price was $470 million. Union Investment has held the property for 16 years, having purchased the building in 2007 from Singapore-listed property developer Wing Tai Holdings for $260 million.

The acquisition is a unique opportunity in the prime Orchard Road area, offering good quality, freehold strata-titled offices with full floorplates which are limited. Additionally, the property offers a strong cash flow profile with an occupancy rate of 99%. It is backed by a diverse roster of multi-national tenants.

Good quality, freehold strata-titled offices with full floorplates are limited in the prime Orchard Road area, making the acquisition a unique opportunity. The property has been held by German fund manager Union Investment Real Estate since 2007, making it the longest-held commercial building in the precinct. It was launched for sale by Union Investment in July 2023 with an asking price of $470 million.

Those living here can enjoy a life of convenience and comfort. The condo is within walking distance of shopping centers like Holland Village Shopping Centre, and various MRT stations, offering excellent connectivity. A great variety of fresh food and lifestyle needs can also be found in close proximity. Residents can conveniently access the city center through the Buona Vista-Dover MRT line. With its luxury facilities and breathtaking views, a stay at Holland Drive Condo is sure to be a delightful experience.

TE Capital and LaSalle Investment executed a put-and-call option agreement to acquire VisionCrest, with Metro owning an effective 20% stake in the property for $40 million, while the remaining 29.9% is owned by a fund of TE Capital and 50.1% by LaSalle Investment.

Michael Tay, CBRE head of capital markets for Singapore, is said to have brokered the sale and the purchase price translates to nearly $3,000 psf based on the net lettable area of 148,854 sq ft for the 11-storey office building.