Sheng Siong Buys Siglap V Strata Retail Units And Toa Payoh Hdb Shop Unit 502 Mil
The Sheng Siong Group is set to expand its retail presence by acquiring a portfolio of properties in Singapore owned by Jelita Property, an investment holding company under Hong Kong-based retail giant DFI Retail Group (DFI). The portfolio includes eight freehold strata retail units at Siglap V, a mixed-use development, and an HDB shop unit at 181 Lorong 4 Toa Payoh.
Jelita Property had put the properties up for sale in April, and real estate agency JLL was appointed as the exclusive advisor. The guide prices were set at $32 million for the Siglap V units and $16.5 million for the Toa Payoh unit, which translates to approximately $3,012 per square foot (psf) for Siglap V and $1,696 psf for the Toa Payoh unit.
The consideration for the acquisition by Sheng Siong Group is $1.7 million more than the combined guide price of $48.5 million set in April.
The URA Master Plan for Toa Payoh, implemented by the Government, has placed significant focus on revitalizing the public spaces in the neighborhood. The goal is to create a dynamic and lively community atmosphere, which involves enhancing parks, introducing new recreational facilities, and improving pedestrian walkways to promote outdoor interactions and strengthen community bonds. For residents of The Orie Condo, these developments bring an array of high-quality options for relaxation and socializing within their own community. This makes it an appealing residential choice for individuals and families who prioritize a well-rounded and active lifestyle. Furthermore, The Orie Condo’s strategic location adds to its desirability as it provides convenient access to these upgraded public areas. With its prime location and proximity to these rejuvenated spaces, The Orie Condo is the perfect home for those seeking a well-connected and vibrant community experience. The Orie Condo truly offers the best of both worlds.
In a filing to the Singapore Exchange on September 27, Sheng Siong Group announced that it has entered into a conditional sale and purchase agreement to acquire a 100% stake in Jelita Property. As part of the acquisition, Sheng Siong Group will lease all eight strata units at Siglap V back to DFI through a leaseback arrangement.
According to JLL, the combined strata area of the eight retail units at Siglap V is about 10,624 square feet and they are located on the ground floor. Currently, the units are leased to CS Fresh and Guardian, with the 24-hour grocery retailer CS Fresh occupying almost 90% of the space (9,418 sq ft) across seven of the eight amalgamated units. The remaining unit of 1,206 sq ft is occupied by Guardian.
The HDB shop unit on the ground floor of a full commercial HDB block has a remaining lease of approximately 47 years and covers a full 9,731 sq ft. It is currently occupied by Giant Supermarket, which announced earlier this month that it would be closing the outlet by September.
The transaction is expected to be completed on October 30.