Sheng Siong enters agreement with JTC to lease Sungei Kadut property for bigger warehouse and distribution capabilities

Nicole Lim

/ The Edge Singapore

September 25, 2025 6:58 PM SGT

propertyeditor@edgeprop.sg

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The Sungei Kadut property has a land area 2.5 times than the current Mandai Link property, which will have the capacity to support 120 supermarkets, says the group (Photo: Albert Chua/The Edge Singapore)

Sheng Siong Group’s wholly-owned subsidiary has entered into a lease agreement with JTC Corporation to establish a new warehouse, distribution centre and headquarters at Sungei Kadut.

The subsidiary, CMM Marketing Management, received a letter of offer from JTC in August for the lease of land at Sungei Kadut Street 1, which has a lease term of 33 years.

The land at Sungei Kadut is 61,297 square metres with a maximum gross plot ratio of 2.50.

CMM currently resides at Mandai Link property with a land area of about 25,005 square metres with a maximum gross plot ratio of 2.50. The existing tenancy will expire on Jan 9, 2039 with a renewable option for another 30 years.

CMM is expected to continue operating the Mandai Link property as a subtenant, occupying about 70% of the total gross floor area for a maximum period of two years from the date of the temporary occupation permit of the Sungei Kadut property.

Sheng Siong says that the Mandai Link property, which serves as the group’s existing warehouse, distribution centre and headquarters, was originally designed to support approximately 50 supermarkets.

As the group has expanded over the years, Sheng Siong expects that its network of supermarkets in Singapore will soon exceed the facility’s capacity and consequently impact the group’s operational efficiency.

With a land area 2.5 times that of the Mandai Link property, the Sungei Kadut property is expected to have the capacity to support at least 120 supermarkets, in line with the group’s target of adding three new stores each year over the next 10- 15 years.

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

Sheng Siong estimates that the total investment for the Sungei Kadut project, spanning a 33-year lease, will amount to approximately $520 million. This figure covers land rent payable to JTC, construction, plant and machinery, solar installation, fit-out works and other expenses.

Shares in Sheng Siong closed 1 cents higher or 0.476% up at $2.11 on Sept 25.

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