Sheng Siong HQ, warehouse will move to Sungei Kadut for long-term growth

Supermarket operator Sheng Siong will move its headquarters, warehouse and distribution centre to a new site in Sungei Kadut to support its expansion plans.

On Thursday (Sep 25), Sheng Siong said that the move is in line with its plans to add three new stores each year over the next 10 to 15 years and to expand and enhance its long-term warehouse management and logistic capabilities.

The Sungei Kadut site has a land area 2.5 times that of the Mandai Link site – 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 supermarkets.

Measuring 61,297 square metres, with a maximum gross plot ratio of 2.5, it will feature multiple temperature-controlled storage zones with integrated food processing capabilities.

To support its expansion plans, Sheng Siong also intends to adopt new technology that reduces manual handling, minimises error and increases workplace safety. This will strengthen its warehouse management operations and improve cost efficiency, the group said.

This includes plans to invest in advanced warehousing and distribution automation technology, such as automated storage and retrieval systems, robotics, as well as smart inventory management.

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On Wednesday, Sheng Siong’s wholly owned subsidiary CMM Marketing Management (CMM) accepted an offer by JTC Corporation to lease a Sungei Kadut property. The unit also accepted a related offer from JTC in relation to the assignment of the Mandai Link property to Sheng Siong’s other wholly owned subsidiary MDL Property (MDL).

The lease for the Sungei Kadut property is expected to be 33 years, contingent upon conditions. It is set to commence on Dec 18, 2025, 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 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.

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CMM is required to fulfil a declared investment of at least S$120 million on new plant and machinery. This must be fulfilled within four years from Dec 18, 2025.

Shares of Sheng Siong finished on Thursday S$0.01 or 0.5 per cent higher at S$2.11.