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

A unique opportunity in prime Orchard Road has been acquired for $450 million by Metro Holdings, a Singapore-listed firm, and two other investors: TE Capital Partners, a private equity firm, and LaSalle Investment, a US real estate investment management firm. The property, VisionCrest Commercial, carries a purchase price of almost $3,000 psf based on its net lettable area of 148,854 sq ft and 11-storey building. Michael Tay, CBRE head of capital markets for Singapore, is said to have brokered the sale.

Metro holds a 40.9% stake in Vision One Enterprise Ltd, with TE Capital owning the other 59.1%. Meanwhile, both TE Capital and LaSalle Investment have executed a put-and-call option agreement to complete the purchase of VisionCrest in prime Orchard Road. Metro will own an effective 20% stake in the property for $40 million and the remaining 29.9% and 50.1%, respectively, are held by TE Capital’s fund and LaSalle Investment.

VisionCrest is a freehold building with a retail podium on the ground floor, Grade-A office space on the upper stories, and two basement levels of parking for up to 144 cars. It also includes VisionCrest Residence – a 265-unit residence – and House of Tan Yeok Nee, a national monument which now houses Amity Global Institute.

Situated in a desirable location, the VisionCrest Commercial building is a five-minute walk from the Dhoby Ghaut MRT interchange station for three lines (North-South, North-East and Circle). Shopping malls along Orchard Road are nearby and will benefit further from the URA’s plans to rejuvenate the precinct. This high-specification building is also LEED Gold certified and boasts a strong cash flow profile with an occupancy rate of 99%, backed by a wide range of multinational companies.

The sale of VisionCrest Commercial was first announced in July 2023 by Union Investment Real Estate, a German fund manager, and had an asking price of $470 million. Union Investment had held the property for 16 years, having purchased it from Singapore-listed property developer Wing Tai Holdings in 2007 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.”

Real estate investment is an incredibly attractive and potentially lucrative option for anyone looking for a long-term return on their investment. It’s important to realize, however, that it takes time for property value to appreciate, and there are no guarantees in the market. Before you invest in a Condo, make sure you’re financially prepared to hold out for the long-term. Don’t bank your life savings on something that may or may not happen. If you’re confident of holding onto the property without financial difficulty, then real estate investment could be a viable option.

Check out the latest listings for VisionCrest properties for more information, or take a look at the related news listed below.

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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