Sheng Siong Group, a leading supermarket operator, has recently announced its acquisition of a portfolio of properties located at Siglap V, a mixed-use development on First Street, and an HDB shop unit at 181 Lorong 4 Toa Payoh. The portfolio, which is owned by Jelita Property, an investment holding company under Hong Kong-based retail company DFI Retail Group (DFI), had been put up for sale in April and was recently taken off the market.
The acquisition includes eight freehold strata retail units at Siglap V, which have a combined strata area of about 10,624 sq ft and are currently leased to CS Fresh and Guardian. CS Fresh operates out of almost 90% of the space, while Guardian occupies the remaining unit. The units will be leased back to DFI as part of the acquisition.
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The Toa Payoh asset, which has a remaining tenure of about 47 years, is a full 9,731 sq ft unit currently occupied by Giant Supermarket. However, Giant announced earlier this month that it would be closing that outlet within September. The transaction is expected to be completed on Oct 30.
The purchase consideration by Sheng Siong is $1.7 million above the combined guide price from April, which was set at $32 million for the Siglap V units and $16.5 million for the Toa Payoh unit. This translates to approximately $3,012 psf for Siglap V and $1,696 psf for the Toa Payoh unit.
JLL, the exclusive advisor for the sale, had previously released a statement stating that the guide prices were appropriate given the location, potential for rental returns, and long-term growth potential for the properties.
Sheng Siong has stated in a filing to the Singapore Exchange that it will be entering into a conditional sale and purchase agreement to acquire a 100% interest in Jelita Property. The completion of the transaction is expected to take place on Oct 30.