Sheng Siong Group to Acquire Portfolio of Properties from Jelita Property
Sheng Siong Group, a major supermarket operator, has announced its plans to acquire a portfolio of properties from Jelita Property, an investment holding company under Hong Kong-based retail company DFI Retail Group (DFI). The portfolio includes eight freehold strata retail units at Siglap V, a mixed-use development on First Street, and an HDB shop unit at 181 Lorong 4 Toa Payoh.
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The portfolio was put up for sale in April by DFI, with JLL appointed as the exclusive advisor. The guide prices were $32 million for the Siglap V units and $16.5 million for the Toa Payoh unit. Sheng Siong’s consideration for the acquisition is $1.7 million above the combined guide price of $48.5 million. The transaction is expected to be completed on Oct 30.
The portfolio includes a total of eight strata retail units spanning approximately 10,624 sq ft at Siglap V, leased to CS Fresh and Guardian. The 24-hour grocery retailer, CS Fresh, occupies almost 90% of the space (9,418 sq ft) across seven units, while Guardian occupies one unit of 1,206 sq ft. The remaining asset, a full 9,731 sq ft commercial HDB unit in Toa Payoh, is currently occupied by Giant Supermarket, which announced that it will be closing down the outlet by the end of September.
The acquisition also includes a leaseback arrangement, in which Sheng Siong will lease all eight strata units at Siglap V to DFI. With a remaining tenure of 47 years, Sheng Siong Group’s acquisition of the Toa Payoh unit aligns with their plans for expansion and growth in the highly competitive retail market.
The acquisition of these properties will strengthen Sheng Siong Group’s presence in the retail market, as they continue to expand their network of supermarkets and offer greater convenience to consumers.