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

Metro Holdings, a Singapore-listed joint venture of private equity firm TE Capital Partners and US real estate investment management LaSalle Investment, have acquired VisionCrest Commercial for approximately $450 million. The transaction translates to a net lettable area of 148,854 sq ft and is estimated at nearly $3,000 psf for the 11-storey office building at 103 Penang Road. Michael Tay, head of capital markets for Singapore at CBRE, is reported to have brokered the purchase.

Today, it was announced that Metro has subscribed to a 40.9% stake in Vision One Enterprise Ltd, with TE Capital holding the balance 59.1% stake. To acquire VisionCrest in prime Orchard Road, TE Capital and LaSalle Investment have executed a put-and-call option agreement.

For $40 million, Metro will own an effective 20% stake in the property, 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. Additionally, the property houses a national monument – the House of Tan Yeok Nee – and the 265-unit VisionCrest Residence.

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The property is a high-specification building with a LEED Gold certification, and is accessible by a five-minute walk from the Dhoby Ghaut MRT interchange station for the North-South, North-East and Circle lines. Its close proximity to the shopping malls along Orchard Road will also benefit from URA’s plan to rejuvenate the precinct.

TE Capital commented in a release that VisionCrest offers a strong cash flow profile with an occupancy rate of 99% and is backed by a diverse range of multi-national tenants, such as Manulife Financial Advisers, Puma Sports SEA Trading and The Coffee Bean & Tea Leaf.

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

Yip Hoong Mun, CEO of Metro Group, commented on the rare opportunity to acquire VisionCrest in the prime Orchard Road area. He highlighted the lack of good-quality, freehold strata-titled offices with full floorplates being available.

Read also: Chinese tycoon’s Bright Ruby Resources buys Far East Shopping Centre en bloc for about $908 mil

Check out the latest listings for Visioncrest properties

RELATED NEWS

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

Metro Holdings today announced that it has taken a 40.9% stake in Vision One Enterprise Ltd, with TE Capital Partners and LaSalle Investment subsequently executing a put-and-call option agreement to acquire VisionCrest in prime Orchard Road. Metro will own an effective 20% stake in the property, with the remaining 29.9% owned by a fund of TE Capital and 50.1% by LaSalle Investment.

For approximately $450 million, 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 at 103 Penang Road. Michael Tay, CBRE head of capital markets for Singapore, is said to have brokered the sale.

VisionCrest is a high-specification building with a LEED Gold certification. It includes 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, as well as the 265-unit VisionCrest Residence and House of Tan Yeok Nee, a national monument now home to a private university, Amity Global Institute.

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The property is situated a five-minute walk from the Dhoby Ghaut MRT interchange station for three lines (North-South, North-East and Circle) and near the shopping malls along Orchard Road that will benefit from URA’s plan to rejuvenate the precinct. TE Capital also reported that VisionCrest offers a strong cash flow profile with an occupancy rate of 99% and is backed by a diverse roster of multi-national tenants.

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

VisionCrest was put up for sale by German fund manager Union Investment Real Estate in July 2023, with an asking price of $470 million. Union Investment had owned the property for 16 years, having purchased the building in 2007 from Singapore-listed property developer Wing Tai Holdings for $260 million.

Read also: Ong Beng Seng’s HPL wins go-ahead to redevelop Orchard Road properties

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Check out the latest listings for Visioncrest properties

RELATED NEWS

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