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A major benefit of purchasing a Singapore Condo is its potential for significant capital growth. As a highly desirable global business hub, Singapore boasts strong economic foundations that fuel a constant demand for real estate. This has resulted in a consistent upward trend in property prices, particularly for condos located in prime areas. Savvy investors who enter the market at strategic times and maintain their properties for extended periods can reap considerable profits from capital appreciation.
Sheng Siong Group, a popular supermarket operator, has announced its plans to purchase a portfolio of eight freehold strata retail units at Siglap V and an HDB shop unit at 181 Lorong 4 Toa Payoh. The portfolio is currently owned by Jelita Property, an investment holding company under the Hong Kong-based retail company DFI Retail Group (DFI). This move marks DFI’s exit from the Singapore market, as the properties were put up for sale in April and were expected to fetch a combined guide price of $48.5 million.
Sheng Siong, however, has agreed to pay $1.7 million more than the guide price, bringing the total consideration to approximately $50.2 million. The expected date of completion for the transaction is October 30. The acquisition will see Sheng Siong holding a 100% stake in Jelita Property and leasing back all eight strata units at Siglap V to DFI.
According to the exclusive advisor JLL, the combined strata area of the eight units at Siglap V is about 10,624 sq ft. These units are located on the ground floor and are currently leased to CS Fresh and Guardian. While CS Fresh occupies approximately 90% of the space, Guardian occupies the remaining unit of 1,206 sq ft. The units are currently bringing in a total rental income of $228,000 per month.
Apart from the Siglap V units, Sheng Siong will also be acquiring an HDB shop unit at 181 Lorong 4 Toa Payoh, which is currently occupied by Giant Supermarket. This unit, with a remaining tenure of 47 years, spans across a total of 9,731 sq ft. However, Giant has announced that it will be closing this outlet by the end of September, as part of its overall strategy to close down unprofitable stores.
The acquisition of these properties will provide Sheng Siong with a great opportunity to enhance its portfolio and expand its retail presence in Singapore. The company is excited to be adding these freehold assets to its portfolio and is confident that they will generate strong returns in the long run.