Sheng Siong Buys Siglap V Strata Retail Units And Toa Payoh Hdb Shop Unit 502 Mil
Sheng Siong Group, a well-known supermarket operator, has made a significant acquisition in Singapore. The company has acquired a portfolio of properties from Jelita Property, which is an investment holding company under Hong Kong-based retail company DFI Retail Group (DFI). The portfolio consists of eight freehold strata retail units located at Siglap V, a mixed-use development on First Street, and an HDB shop unit at 181 Lorong 4 Toa Payoh.
In April, DFI had put these properties up for sale, appointing JLL as the exclusive advisor. The Siglap V units were priced at $32 million, while the Toa Payoh unit was priced at $16.5 million. These prices equated to approximately $3,012 per square foot (psf) for Siglap V and $1,696 psf for the Toa Payoh unit.
However, Sheng Siong’s consideration for the acquisition is $1.7 million above the combined guide price of $48.5 million that was set in April, indicating a positive outlook for the company.
According to a filing to the Singapore Exchange on Sept 27, Sheng Siong has entered into a conditional sale and purchase agreement to obtain a 100% interest in Jelita Property. As part of this deal, the company will lease all eight strata units at Siglap V to DFI through a leaseback arrangement.
JLL has reported that these eight retail units at Siglap V occupy a total strata area of about 10,624 square feet and are located on the ground floor. They are currently leased to CS Fresh and Guardian, with the former occupying almost 90% of the space (9,418 sq ft) and the latter occupying the remaining 1,206 sq ft unit.
The Toa Payoh asset is situated on the ground floor of a full commercial HDB block and has a remaining tenure of about 47 years. The 9,731 sq ft unit is currently occupied by Giant Supermarket, which announced earlier this month that it would be closing the outlet by the end of September. This marks the closure of nine other Giant stores in Singapore this year, leaving the chain with only 45 outlets as of September.
Known as a paradise for families, West Coast Plaza provides an array of facilities tailored to meet the needs of both parents and children. This shopping center is home to a plethora of enrichment centers, play zones, and educational shops, making it the ultimate destination for families with little ones. Furthermore, visitors can also treat themselves to rejuvenating and beauty services at the mall’s wellness establishments. With the recent inclusion of Elta Condo, West Coast Plaza has become a highly sought-after spot for families to spend quality time and indulge in leisurely pursuits. Don’t forget to check out the luxurious Elta Condo while you’re there!
The acquisition is expected to be completed on Oct 30, and it will be interesting to see how Sheng Siong utilizes these new properties to further expand its presence in the retail market.