Visioncrest Orchard is positioned to elevate Singapore’s shopping district
Singaporean real estate investment and development manager TE Capital Partners, together with its joint venture partner LaSalle Investment Management, is launching an asset enhancement program at Visioncrest Orchard, which they acquired earlier this year, to improve the property’s green credentials and to integrate it with upgrades to the Orchard Road district.
Upon completion, the enhancement program for the commercial property in downtown Singapore, which includes updating the building’s façade and public areas and introducing new sustainability features, is expected to establish a new benchmark for Grade A office buildings in the prestigious Orchard Road commercial hub.
The makeover for the building comes as Singapore office rents reached a 15-year high in the first quarter of 2024 , according to JLL, and follows the successful sales campaign of Solitaire on Cecil in the Central Business District (CBD) by TE Capital Partners and LaSalle.
The repositioning of Visioncrest Orchard is aligned with plans by the Singapore Government to rejuvenate the Orchard Road district. Singapore’s Urban Redevelopment Authority (URA) announced in 2020 a master plan to transform the area into a “green oasis in the city,” through a program scheduled for completion in 2025.
Leveraging a Premier Location
With a total strata area of 154,711 square feet (14,373 square metres), including 5,059 square feet dedicated to retail and 149,652 square feet across 10 floors of office space, Visioncrest Orchard is one of the few Grade A office buildings in the Orchard Road district permitted for subdivision on a strata title basis.
As of January 2024, the property is nearly fully occupied by tenants including multinationals such as Manulife Financial Advisors and Puma Sports SEA Trading, as well as The Coffee Bean and Tea Leaf.
The asset enhancements will coincide with the expansion of Istana Park which will see the pedestrianisation of a 500-metre (1,640-feet) stretch of Orchard Road, diverting foot traffic to the segment of Penang Road where Visioncrest Orchard is located.
Taking advantage of this new green space fronting the property, the ground floor office lobby of Visioncrest Orchard will be redesigned and its façade upgraded to integrate its visual identity with its surroundings.
Visioncrest Orchard is also highly accessible, being located within a five-minute walk of Dhoby Ghaut MRT interchange and a six-minute walk from Somerset MRT station.
Green and Smart
Visioncrest Orchard boasts an estimated floor-to-floor height of 4.3 meters (14.1 feet) for offices and 5.1 metres (16.7 feet) for retail spaces, with typical office floor plates of 14,500 square feet.
The asset enhancement program is in line with the partners’ strategic focus on creating value by establishing sustainable, smart and wellness-oriented built assets in Singapore and around the region, while also adhering to the requirements of top multinational occupiers.
Visioncrest Orchard has already been certified LEED Gold before the enhancement program, which will further enhance its green credentials. Among the sustainability upgrades it will receive include the installation of over 100 solar panels and thermo-efficient solar film on office windows. End-of-trip facilities will also be introduced to promote eco-friendly commuting options among tenants.
Additional green features include the provision of electric vehicle chargers along with advanced air purification and monitoring systems, such as MERV 8 filters and ultraviolet germicidal irradiation sterilisers in the air conditioning systems, alongside air purifiers in all lifts.
The enhancements prioritise tenants’ health and wellness, which is an expectation of international occupiers hoping to attract and retain top talent, while research by Savills shows green buildings in Singapore command a rental premium of 18 percent.
In line with global trends towards smart office solutions to enhance building efficiency, Visioncrest Orchard will also incorporate digital office access systems, air quality monitoring systems and smart switches for a more efficient, responsive and comfortable working environment.
Market on the Rise
According to JLL, average rents for Grade A office space in Singapore’s CBD rose 1.3 percent in the first three months of 2024 to reach an average of S$11.42 per square foot, the highest since 2008. JLL estimates that demand for office space will continue to strengthen in the coming quarters.
This optimism is partly rooted in Singapore’s positive economic outlook for the year, with analysts predicting a V-shaped economic recovery, contributed by easing inflation and interest rates as well as consumer spending.
Meanwhile, a shift towards tighter hybrid working policies in Singapore, a growing preference for having teams collaborate on-site in the office and increasing occupier preference for green properties, as revealed by CBRE in its recent Office Occupier Sentiment Survey, will drive the evolution of office demand.
To this end, the enhancements to Visioncrest Orchard, scheduled for completion in 2025, will position the property well to capitalise on rising demand for both Grade A and green office spaces in Singapore.
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