VisionCrest Commercial Bought For S$450mil
SINGAPORE – VisionCrest Commercial, a mixed-use commercial property at 103 Penang Road consisting mainly of office space, has been snapped up for around S$450 million, reported The Edge on Tuesday afternoon (14 November, SGT).
The buyer is a joint venture consisting of Singapore-listed Metro Holdings, private equity firm TE Capital Partners, and LaSalle Investment, an American property investment management company. Their effective stake in the asset stands at 20 percent, 29.9 percent, and 50.1 percent respectively.
CBRE’S head of capital markets in Singapore Michael Tay is said to have brokered the transaction, with the acquisition price working out to almost S$3,000 psf based on the commercial property’s net leasable area of 148,854 sq ft.
VisionCrest is an 11-storey freehold development comprising a retail podium on the ground level and Grade A office space on the upper floors. Apart from two levels of basement parking that can accommodate up to 144 vehicles, the complex also includes the 265-unit VisionCrest Residence and House of Tan Yeok Nee, a national monument that currently houses a private university called Amity Global Institute.
Besides being a high-specification building with a LEED Gold certification, the commercial property is just a short walk to the Dhoby Ghaut MRT Station. It’s also close to shopping centres in the Orchard Road area and will benefit from the government’s plan to rejuvenate the district.
“Additionally, the property offers a strong cash flow profile, with an occupancy rate of 99 percent that is backed by a diverse roster of multinational tenants, including Manulife Financial Advisers, Puma Sports SEA Trading, and The Coffee Bean & Tea Leaf,” noted TE Capital.
“This acquisition is a unique opportunity in the prime Orchard Road area,” commented Metro Group’s Chief Executive Yip Hoong Mun, who added that good quality, freehold strata-titled office space with full floor plates are in limited supply.
Previously, VisionCrest was launched for sale by German fund manager Union Investment Real Estate in July 2023, with an asking price of S$470 million. The seller held the asset for 16 years after buying it for S$260 million from Singapore-listed real estate developer Wing Tai Holdings in 2007.