Sheng Siong HQ, warehouse will move to Sungei Kadut for long-term growth
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Sheng Siong says the move is in line with plans to add three stores each year over the next 10 to 15 years.
ST PHOTO: LIM YAOHUI
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SINGAPORE – Supermarket operator Sheng Siong will move its headquarters, warehouse and distribution centre to Sungei Kadut to support expansion plans.
On Sept 25, it said the relocation is in line with plans to add three stores each year over the next 10 to 15 years, and expand and enhance long-term warehouse management and logistic capabilities.
The Sungei Kadut site has a land area 2.5 times that of the Mandai Link one, which currently houses Sheng Siong’s headquarters, warehouse and distribution centre.
The new site is expected to have the capacity to support at least 120 supermarkets, while the current site was designed to support around 50.
Measuring 61,297 sq m, with a maximum gross plot ratio of 2.5, it will feature multiple temperature-controlled storage zones with integrated food processing capabilities.
To support expansion, Sheng Siong intends to adopt technology that reduces manual handling, minimises error and increases workplace safety. This will strengthen its warehouse management operations and improve cost efficiency.
This includes plans to invest in advanced technology, such as automated storage and retrieval systems, robotics and smart inventory management.
The lease for the Sungei Kadut property is expected to be 33 years, contingent upon conditions. It is set to commence on Dec 18, but Sheng Siong will be granted possession of the property within two months before the lease commences. Rent will be free before the commencement date.
After the lease commences, rent will be payable to JTC Corporation in advance on the first day of each month of the lease term, and will be revised on Dec 18 of each successive year during the lease term.
JTC may conduct surveys of the Sungei Kadut property and adjust the rent accordingly.
Shares of Sheng Siong dropped 1.4 per cent, or three cents, to $2.08 on Sept 26. THE BUSINESS TIMES
