- We remain positive on Sheng Siong as it continues growing its footprint on the proposed acquisition of Jelita Property from DFI Retail (SGX:D01). Sheng Siong's store network continues to expand and we see a slight positive on the latest proposed acquisition.
- - Read this at SGinvestors.io -
Buys two properties from DFI.
- Sheng Siong has announced that it is proposing to acquire 100% of Jelita Property, owned by DFI for S$50.2m.
- - Read this at SGinvestors.io -
- Jelita Property’s net profit after tax for the six-month period ending 30 Jun 2024 was ~S$3m. Under the proposed acquisition, DFI would lease back all eight units at Siglap V.
- DFI currently occupies the units at Siglap V that houses both its CS Fresh supermarket and Guardian Health & Beauty outlets. Its Giant outlet at the Toa Payoh HDB property is now closed.
- The acquisition is in line with Sheng Siong’s strategy to operate supermarkets in areas where its potential customers reside. It also allows Sheng Siong to open additional stores at Toa Payoh, receive additional rental income from the lease back at Siglap V, as well as benefit from long-term capital appreciation opportunities from the assets.
Slight positive.
- Read more at SGinvestors.io.
