Sheng Siong Group (SSG) made the news once again albeit on a more positive note. This time, SSG is on the offensive side as they exercised an option to take over a commercial property. The three story HDB commercial property is located in Tampines Central and will be bought for $65 million.
The property has a gross floor area of approximately 3,876 square metres and is currently leased to different tenants. SSG will be taking over the occupied spaces progressively based on the expiry of the existing leases. Leases will start to expire this year with the last expiring in 2018.
In the first phase, SSG will begin to operate its store by 2015 which will occupy 910 square metres. It is noted that Giant currently occupies part of the property but as part of the sale, SSG will be taking over that portion once leases expire.
This plan is part of SSG’s strategy to expand its network in areas without its presence. Currently, SSG’s presence in the East side of Singapore is weak as they are mainly concentrated in the Bedok area.
The proposed plan will enable SSG to quickly scale up its operations in the matured Tampines area. They will also be able to take over Giant’s clientele as they will be replacing them in that area. It will allow SSG to take out its competition and expand its presence concurrently.