Sheng Siong Group pounces on new commercial property in Tampines Central

Major hurdles await $65m acquisition.

A three-storey commercial building in Tampines Central may soon become a new Sheng Siong store, but hurdles remain for the retail company’s newest acquisition.

SSG still needs to obtain HDB’s approval for the acquisition as well as the various uses by existing tenants.

If successful, SSG will be opening a 910 sqm store in 1Q15. The store will be incrementally enlarged in tandem with the scheduled expiry of various existing tenancies in 2016 and 2017.

According to a report by OCBC, “The property has a gross floor area of 3,876 sqm with a leasehold tenure of 99 years commencing from 1 Jan-91. The acquisition will be funded by internal funds and/or bank borrowings. We opt to await regulatory approval before adjusting our forecasts. Maintain BUY with fair value estimate of S$0.68.”