Grocer Sheng Siong Group is acquiring a property that it is currently leasing near Jalan Besar for $17.3 million.
This comes after its wholly owned subsidiary Sheng Siong Supermarket entered into a conditional sale and purchase agreement with Sino Holdings on July 30, according to a filing on the same date.
Sino Holdings, which is a wholly owned subsidiary of TA Corp, currently owns the property known as New World Centre.
New World Centre is located at 1 Jalan Berseh, off Jalan Besar.
It comprises a strata-titled shop unit located on basement one of a three-storey commercial building with two basement levels.
It has a strata floor area of about 1,790 sqm, with a leasehold tenure of 99 years commencing from March 31, 1994.
In a July 30 filing, Sheng Siong says the acquisition will be funded by internal funds.
The company adds it has already paid a 10% deposit, with the remainder 90% to be paid by cashier’s order.
Sheng Siong says the proposed acquisition is in its “best interests” as the property is currently leased by Sheng Siong Supermarket from Sino Holdings.
Upon the completion of the proposed acquisition, the tenancy agreement shall cease between the latter two companies.
On July 30, Sheng Siong ended up 1 cent or 0.6% at $1.57 with 6.7 million shares changed hands.
