SINGAPORE (THE BUSINESS TIMES) - In-flight caterer and ground handler Sats announced on Friday (March 11) that it will spend about $150 million to develop a food hub for its existing institutional catering businesses.
Sats has accepted an offer from JTC Corporation for a property with a 30-year lease term within the Jurong Innovation District to operate the hub, the company announced on Friday.
The cost of the total land rent for the period of the lease, commencing June 1, is estimated at $42.6 million.
Sats now runs its institutional catering businesses at several JTC-leased premises in Pandan Loop. These operations will eventually move to the new hub.
Advanced food manufacturing with automation and Internet of Things capabilities will be deployed for operational efficiency there, said Sats.
The facility will also feature an open innovation platform to test-bed new products and services, as well as channels to commercialise viable food solutions in new markets.
The development of the hub and the lease agreement are not expected to have a material impact on the consolidated net tangible assets and earnings per share of the company for the financial year ending March 31, 2022, said Sats.
The mainboard-listed company's shares ended on Friday at $3.92, up two cents or 0.5 per cent.