Channel NewsAsia

Sheng Siong to buy Tampines property for $65m

Supermarket chain Sheng Siong to set up a new outlet at Tampines Central, to be opened in the first quarter of 2015.

SINGAPORE: Supermarket group Sheng Siong intends to purchase a three-storey Housing and Development Board (HDB) commercial property in Tampines Central for S$65 million, it said in a statement on Monday (June 9).

Sheng Siong said it has paid an option fee of S$650,000 for the 3,876 square metre leasehold property to the vendor, S-11 Wan Jin Investment. The property is near Tampines MRT station.

The proposed acquisition will allow the group to establish a presence in Tampines, one of Singapore's largest residential districts.

Sheng Siong said it plans to open a new outlet of around 910 square metres at the Tampines property in the first quarter of 2015. The outlet will be incrementally enlarged in tandem with the scheduled expiry of various tenancies in 2016 and 2017.

Sheng Siong, which is one of Singapore's largest supermarket operators, reported a 19.3 per cent year-on-year increase in net profit to S$12.5 million for the three months ended March, as higher turnover and improved gross margins offset higher costs.

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