Visioncrest Commercial is part of the rejuvenation of the Orchard area
TE Capital Partners, LaSalle Investment Management and Metro Holdings Limited (as a capital partner of the TE Capital-managed vehicle), are closing in on the first sales of units in their Visioncrest Orchard, a commercial project in the heart of Singapore’s Orchard Road precinct with a combined office and retail strata area of 154,711 sqft (14,373 sqm). TE Capital is the operating partner for Visioncrest Orchard.
A 14,725 square foot (1,368 square metre) office floor of the property, as well as retail units spanning 1,388 square feet, are currently under exclusive due diligence, after the company began conducting VIP previews of Visioncrest Orchard in June.
TE Capital and LaSalle attribute demand for the 11-storey freehold office block to the growing allure of the Orchard submarket, substantial enhancements to the property and the limited availability of high-quality, high-specification freehold offices in the area.
With the first units in the Penang Road asset now in exclusive negotiations, the partners are officially launching sales of Visioncrest Orchard, with the 14,725 square foot sixth floor now available at $3,980 per square foot and the 14,844 square foot ninth level being offered at $4,130 per square foot.
High Spec on the Park
Located facing a green space which separates Penang Road from Orchard Road, Visioncrest Orchard and offers easy walking access to Dhoby Ghaut and Somerset MRT stations, which are served by the North-South, North East and Circle lines. The Central Expressway (CTE) and Pan Island Expressway (PIE) are also accessible within a few minutes’ drive.
The LEED Gold-certified property is designed to leverage its location advantages with office space benefiting from a solar-protected, full-glass facade providing views of the expansive green space in front of the property. The building’s 4.3 metre floor-to-floor ceiling heights also help to attract prestige tenants, while its approximately 14,500 square foot floorplates provide ample room for flexible planning and customisation, while a generous provision of 135 onsite parking lots offer convenience for occupiers.
As part of an asset enhancement initiative, Visioncrest Orchard occupiers can benefit from smart fittings that offer user-friendly building access via dedicated apps, as well as enhanced security through biometric features such as facial recognition.
The property also provides tenants and owners with access to amenities in Visioncrest Residential, which include a swimming pool, fully equipped gym and tennis court among other facilities.
The sales launch for Visioncrest Orchard comes shortly after TE Capital and LaSalle sold out their first joint venture, Solitaire on Cecil, a commercial project in Singapore’s central business district which has become a landmark in the area.
CBRE, ERA, JLL, Knight Frank, PropNex and Savills have been appointed as agents for Visioncrest Orchard, with a showflat having been established to provide a private preview of the finished space.
Aligned with Government Plans for Orchard
Singapore’s URA has plans to revitalise the Orchard precinct, beginning with rejuvenation of a stretch of the famous commercial area bordering Penang Road to the Istana and beyond, which encompasses Visioncrest Orchard.
Under the plan, traffic from the newly pedestrianized segment of Orchard Road, currently Road, currently a one-way street with five lanes, will be rerouted to Penang Road, which will be converted into a two-way street, enhancing access to Visioncrest Orchard. Aligned with Singapore’s commitment to sustainable transportation and promotion of healthy lifestyles, Visioncrest Orchard will feature comprehensive end-of-trip facilities, including bicycle parking and electric vehicle chargers.
The Evolution of the Orchard Submarket
The Orchard area is poised for significant redevelopment as outlined in the Strategic Development Incentive (SDI) scheme, introduced by the government in 2019 to spark revitalization of older developments in strategic locations in the city-state. This initiative has already triggered the redevelopment of major projects in the Orchard precinct by offering developers broadened urban planning parametres such as increased building heights, expanded gross floor area, and more flexible land use permissions.
Also in the area, UOL is redeveloping the Faber House commercial complex into a 250-key hotel, while the government is converting the Grange Road carpark into a multi-purpose event space featuring cinemas and hawker stalls. Recent sales of the Tanglin Shopping Centre, Ming Arcade, and Delfi Orchard are also seen setting the stage for new projects in the Orchard area.
This surge of activity is viewed by analysts as boosting the appeal of the Orchard Road area for both visitors and locals, while helping to ensure long-term demand for assets in the area and enhancing capital values.
Strata Grows Scarce
According to Cushman & Wakefield, the Orchard area now faces a shortage of Grade A office stock, with only around 49 percent of its total office inventory classified as Grade A. This scarcity of space, particularly of high specification properties with large floorplates like Visioncrest Orchard, has driven Grade A office occupancy in the submarket to 97.6 percent, currently the lowest in Singapore, according to Savills.
With properties in the Orchard area continuing to be closely held, the only new office supply forthcoming in the submarket is expected to begin arriving in 2028 with the redevelopment of the Comcentre tower. However, 30 percent of that project is already pre-committed to Singtel, with new space available on the initial opening date expected to be limited.
In the strata title market, supply is still tighter following the URA’s move in March 2022 to prohibit the issuance of new permits for strata subdivision of commercial buildings in Orchard and the central business district, including redevelopment proposals under the SDI scheme.
This cut-off of new supply comes as more high net-worth investors target purchases of strata space, with Solitaire on Cecil having achieved record high prices for office projects in Singapore. With smaller scale office properties gaining favour with investors, in 2023 the average price of strata-titled offices sold increased 14.7 percent from a year earlier, with S$1.2 billion in assets changing hands in the segment.
The ongoing interest in the city-state’s strata office market is consistent with recent research by CBRE, which expects strata offices in Singapore to continue to outperform due to regulations restricting subdivision of commercial space.
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