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

By Cecilia Chow

/ EdgeProp Singapore |

November 14, 2023 3:30 PM SGT

The 11-storey, freehold VisionCrest office building (Source: Metro Holdings)

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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. 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.

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 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 Commercial is part of a mixed-use development that includes the national monument House of Tan Yeok Nee and the 265-unit VisionCrest Residence (Source: EdgeProp Landlens)

The property 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's also near the shopping malls along Orchard Road and will benefit from URA's plan to rejuvenate the precinct.

"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," says TE Capital in a release.

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.

"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."