Sheng Siong

Sheng Siong: Has exercised the option to purchase Block 506 Tampines Cental 1 #01-361 Singapore 520506 for $65m. The property has GFA of 3,876 sqm with a leasehold tenure of 99 years, commencing 1 Jan’91. OCBC guides the next hurdle is to get HDB’s approval, before adjusting its forecasts. The store is expected to open in 1Q15 will have an initial size of 910 sqm and will be incrementally enlarged in tandem with the scheduled expiry of various existing tenancies in 2016-17. This acquisition will allow Sheng Siong to establish a presence in Tampines, a large potential market in Singapore. The property is located in Tampines central, in close proximity to the Tampines MRT station. Sheng Siong couldn’t find suitable new retail space to open new stores in FY13 and 1Q14. Market watchers believe the opening to new stores is critical to growth. To recap, Revenue rose 5% last quarter, which was mainly driven by longer operating hours and increased marketing initiatives. OCBC has a Hold on Sheng Siong with TP of $0.63