The first thing to check is the Build Action is set to “TypeScriptCompile”, which it was – so why no .js output?
It seems the VS 2013 update 2 which is supposed to incorporate TypeScript compilation is not adding the required Import section to the project file.
If you add this line
<Import Project="$(MSBuildExtensionsPath32)\Microsoft\VisualStudio\v$(VisualStudioVersion)\TypeScript\Microsoft.TypeScript.targets" />
Just after the line
<Import Project="$(MSBuildToolsPath)\Microsoft.CSharp.targets" />
Then the TypeScript compiler will be invoked.
My thanks to my colleague Sri for figuring this one out!
Reported as a bug on Microsoft Connect: https://connect.microsoft.com/VisualStudio/feedback/details/934285/adding-typescript-files-to-vs-2013-update-2-library-does-not-compile-typescript