Supermarket operator Sheng Siong Group is acquiring a portfolio comprising eight freehold strata retail units at Siglap V, a mixed-use development on First Street, and an HDB shop unit at 181 Lorong 4 Toa Payoh. The portfolio is owned by Jelita Property, an investment holding company under Hong Kong-based retail company DFI Retail Group (DFI).

DFI had put the properties — its last in Singapore — up for sale in April, with JLL appointed as the exclusive advisor. The guide prices were $32 million for the Siglap V units and $16.5 million for the Toa Payoh unit. These translated to approximately $3,012 psf for Siglap V and $1,696 psf for the Toa Payoh unit.

Sheng Siong’s consideration is $1.7 million above the combined guide price of some $48.5 million from April.

Read also: Freehold strata retail unit at Lucky Plaza for sale at $32 mil

In a Sept 27 filing to the Singapore Exchange on Sept 27, Sheng Siong says it has entered into a conditional sale and purchase agreement to acquire a 100% interest in Jelita Property. As part of the acquisition, it will lease all eight strata units at Siglap V to DFI through a leaseback arrangement.

According to JLL, the eight retail units at Siglap V occupy a combined strata area of about 10,624 sq ft. The units, located on the ground floor, are leased to CS Fresh and Guardian. The 24-hour grocery retailer, CS Fresh, operates out of almost 90% of the space (9,418 sq ft), spanning across seven of the eight amalgamated units. Guardian occupies the remaining unit of 1,206 sq ft.

The Toa Payoh asset is situated on the ground floor of a full commercial HDB block. With a remaining tenure of about 47 years, the full 9,731 sq ft unit is currently occupied by Giant Supermarket.

Giant announced earlier this month that it would close that outlet within September. Giant closed nine stores in six months this year, leaving the chain with 45 outlets here as of September.

The transaction is expected to be completed on Oct 30.

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