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

Metro Holdings, a Singapore-listed joint venture with TE Capital Partners and LaSalle Investment, have acquired VisionCrest Commercial for around $450 million. This price works out at approximately $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 from CBRE was the broker involved in the sale.

Metro announced today that it had taken up a 40.9% stake in Vision One Enterprise Ltd, with TE Capital Partners holding the balance 59.1% stake. TE Capital and LaSalle Investment had made arrangements to purchase VisionCrest in prominent Orchard Road.

As part of the purchase, 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 comprises an 11-storey freehold commercial block, with a retail podium on the ground floor, Grade-A office space across the upper levels and two basement car parks for up to 144 cars. Additionally, it contains the 265-unit VisionCrest Residence and House of Tan Yeok Nee, a national monument now home to Amity Global Institute.

The property is a high-specification building with a LEED Gold certification and is located a mere five minutes away from the Dhoby Ghaut MRT interchange station which serves three lines. It is also situated close to some of the city’s most popular shopping areas. Furthermore, URA’s plan to rejuvenate the precinct will be beneficial to VisionCrest.

Additionally, the property provides a strong cash flow profile with an impressive occupancy rate of 99%, supported by a range of tenants such as Manulife Financial Advisers, Puma Sports SEA Trading and The Coffee Bean & Tea Leaf.

The launch for the sale was made in July 2023 by Union Investment Real Estate with an asking price of $470 million. Union Investment has held the building for 16 years, since it purchased it from Wing Tai Holdings in 2007 for $260 million.

Additionally, Senja Residences is surrounded by extensive amenities, such as the malls, supermarkets, and schools. The location of the Executive Condominium provides a serene environment as it is adjacent to the Bukit Timah Nature Reserve. As such, this Executive Condominium is perfect for nature lovers who enjoy living in relative peacefulness.

Yip Hoong Mun, CEO of Metro Group, has called the acquisition a “unique opportunity” in the Orchard Road area. He claims that buildings with a combination of full floorplates, freehold and strata-titles, as well as such a high specification, are limited.

As a result, the purchase of VisionCrest brings a attractive addition to the company’s portfolio.