Two office floors at VisionCrest Orchard are for sale for $119.9 million
Two complete office floors in the tower were released for sale, at a total price of $119.9 million (Photo: TE Capital Partners, LaSalle Investment Management)
SINGAPORE (EDGEPROP) – Real estate investment managers TE Capital Partners (TEC) and LaSalle Investment Management have jointly offered for sale office units in VisionCrest Orchard, a commercial and condominium development at 103 Penang Road in the Orchard Road district.
In a July 15 press release, the joint venture partners announced that as part of the launch, two complete office floors in the tower were released for sale at a total guide price of $119.9 million.
The guide price for the sixth floor, which has an area of 14,725 square feet, is approximately $58.6 million, or $3,980 per square foot, which is 37% more than the purchase price for the floor. Based on reservations filed when the joint venture partners acquired the property in November 2023, the sixth floor was originally purchased for $42.79 million ($2,906 per square foot).
Read also: TE Capital-LaSalle JV completes purchase of VisionCrest Commercial to make improvements
The ninth floor, measuring 14,844 square feet, was also listed for sale for $61.3 million ($4,130 per square foot), up 39.9% from the $43.82 million ($2,952 per square foot) it was purchased for last November.
According to a brochure by international real estate consulting firm JLL, which is marketing the office space on the sixth and ninth floors, both floors were last renovated in 2018 to modernize the lobbies, elevators and washrooms. The office air conditioning system was replaced in 2020.
The location of the VisionCrest building at 103 Penang Road (Photo: EdgeProp’s LandLens)
In their press release, TEC and LaSalle state that additional units at Visioncrest Orchard, which includes 1,350 sq m of office space and retail units totalling 127 sq m, is “currently undergoing due diligence” following VIP previews held in June.
VisionCrest Orchard is a freehold commercial building completed in 2008. It offers premium office space on the upper floors that are LEED Gold certified – the highest global standard for green buildings. There is a retail podium on the ground floor, complemented by two levels of underground parking with space for up to 135 cars. The office area is 14,000 sqm, while the retail area is 475 sqm, spread over 11 floors.
The project is part of a mixed-use development that also includes the national monument House of Tan Yeok Nee, which currently houses the private university Amity Global Institute and the 265-unit VisionCrest Residence. The development is a five-minute walk from the Dhoby Ghaut metro interchange station on the Circle Line, North-South Line and North-East Line, and just a few minutes’ drive from the Central Expressways and Pan Island Expressways. There are several popular shopping malls nearby, such as Plaza Singapura to 68 Orchard Road and 313@Somerset to 313 Orchard Road and the CBD.
VisionCrest Orchard was acquired by TEC and LaSalle from German fund manager Union Investment Real Estate in November last year for around $450 million, 4.26 percent less than the asking price of $470 million set when the project was launched on the market in July of the same year.
Read also: Metro, TE Capital and LaSalle Investment jointly acquire VisionCrest Commercial for approximately $450 million
The project is managed by TE Capital, with Singapore-listed Metro Holdings as equity partner. Metro owns an effective 20% interest in the property, while the remaining 29.9% and 50.1% are owned by TEC and LaSalle respectively.
The launch of sales follows the joint venture partners’ asset enhancement program at VisionCrest, which is designed to improve the property’s environmental credentials and upgrade its specifications. This includes upgrading the building’s façade and public areas, and introducing new sustainability features. The enhancement works are expected to be completed in 2025.
The joint venture partners have appointed property management firms CBRE, ERA, JLL, Knight Frank, PropNex and Savills as marketing agents for VisionCrest Orchard.
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