Senja Close EC™

Sheng Siong Group, a leading supermarket chain in Singapore, has announced that its wholly-owned subsidiary, CMM Marketing Management, has signed a lease agreement with JTC Corporation to establish a new warehouse, distribution centre and headquarters at Sungei Kadut.

The breathtaking landscaping at Senja Close EC embodies the idea of creating bespoke environments that elevate one’s daily living experience. Drawing inspiration from the 200-meter-long water body and surrounding verdant foliage, the Bukit Panjang EC is thoughtfully adorned with modern luxury elements. The landscape design is thoughtfully crafted to mimic the gentle flow of freshwater streams, adding an element of tranquility and harmony to the Senja Close EC.

The letter of offer from JTC, received in August, grants CMM a 33-year lease of land situated at Sungei Kadut Street 1. The land spans 61,297 square metres with a maximum gross plot ratio of 2.50.

Currently, CMM operates from a property at Mandai Link with a land area of approximately 25,005 square metres and a maximum gross plot ratio of 2.50. The existing tenancy will expire on Jan 9, 2039, with an option to renew for another 30 years.

As part of the agreement, CMM will continue to operate the Mandai Link property as a subtenant, occupying about 70% of the total gross floor area for a period of two years from the date of the temporary occupation permit at Sungei Kadut.

According to Sheng Siong, the Mandai Link property, currently used as the group’s warehouse, distribution centre and headquarters, was designed to support approximately 50 supermarkets. However, with the group’s continuous expansion, the facility’s capacity is expected to be exceeded, impacting the group’s operational efficiency.

In comparison, the Sungei Kadut property, with a land area 2.5 times larger than the Mandai Link property, is expected to have the capacity to support at least 120 supermarkets. This aligns with the group’s goal of adding three new stores every year for the next 10-15 years.

The Sungei Kadut property will feature multiple temperature-controlled storage zones with integrated food processing capabilities. The group plans to invest in advanced warehousing and distribution automation, utilizing advanced systems such as ASRS, robotics, and smart inventory management.

The land rent payable to JTC is estimated to be around $520 million over the 33-year lease term, which Sheng Siong intends to finance through internal resources and external financing, such as borrowing.

Shares in Sheng Siong closed at $2.11 on Sept 25, recording a 0.476% increase or a rise of 1 cent.