VisionCrest Commercial, an undeveloped Grade-A freehold commercial building located along Penang Road in the Orchard Road area, is available for sale through the expression of interest (EOI) exercise. The office building, which is 11 stories tall, that also houses retail space, is expected to fetch “in more than $470 million” in a press release from joint advisers CBRE as well as JLL.
In the case of $470m, the cost comes to $3,157 psf on the building’s net lettable space (NLA) of the 148,854 square feet, which is $3,038 per square foot on an area that is strata-sized of 154,711 sq feet.
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VisionCrest Commercial is a part of the mix-use project VisionCrest which also includes two65 units of the VisionCrest Residence and the national landmark, House of Tan Yeok Nee. The ownership for VisionCrest Commercial’s strata area is distributed over 21 title (10 strata offices floors as well as 11 retail units in the strata) comprising about 49% of VisionCrest’s value.
The floorplates have no columns that cover approximately 14,500 square feet and includes 114 parking areas. The building was renovated in the year the year 2018 and then again in 2020. The focus was on the common areas of the building which included improvements to the main lobby and lift lobbies as well as bathrooms, lift cars, and air conditioning systems across every floor, as well in the establishment of a cafe in the lobby.
Based on Michael Tay, head of capital markets, Singapore, at CBRE, VisionCrest Commercial is nearly completely let. The tenants include Manulife Financial Advisors, Puma, IBC Asia, Afton Chemical, as well as the Singapore corporate headquarters of The Coffee Bean & Tea Leaf.
“This is a fantastic chance for investors to take advantage of the robust Orchard office segment, in which office rents have historically been higher and more prone to market volatility due to its long-standing base of demand” Tay says. Tay adds that the prospective owner has the option to reduce the strata units in the event of an option for exit.
Ting Lim, head of capital markets, Singapore, at JLL believes that that the tenure for freehold of VisionCrest Commercial, along with its “palatable investment amount” is likely to appeal to an array of potential investors in private wealth and institutions.
The EOI process is open for VisionCrest Commercial will close on Aug 17 at 3pm.