Sheng Siong HQ, warehouse to move to Sungei Kadut for long-term growth
The location will be able to support the 120 supermarkets
[SINGAPORE] Supermarket operator Sheng Siong is set to move its headquarters, warehouse and distribution centre to a new site in Sungei Kadut to support its expansion plans.
On Thursday (Sep 25), Sheng Siong said that the move aligns with its plans to add three new stores each year over the next 10 to 15 years and to expand and enhance its long-term warehouse management and logistics capabilities.
The Sungei Kadut property, which can support at least 120 supermarkets, is 2.5 times bigger than the company’s Mandai Link site, which currently houses its headquarters, warehouse and distribution centre.
The Mandai property, initially designed to serve only around 50 supermarkets, was expanded in 2021. As Sheng Siong continues to expand, its supermarket network in Singapore will soon exceed the Mandai facility’s capacity, the company said.
At 61,297 square metres, and with a maximum gross plot ratio of 2.5, the new site will have multiple temperature-controlled storage zones and integrated food-processing capabilities.
To support its expansion, Sheng Siong also intends to adopt new technology that reduces manual handling, minimises error and increases workplace safety. This will strengthen its warehouse management operations and improve cost efficiency, the group said.
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To this end, investments will be made in advanced warehousing and distribution automation technology, such as automated storage and retrieval systems, robotics and smart inventory management.
On Wednesday, Sheng Siong’s wholly owned subsidiary CMM Marketing Management accepted an offer by JTC Corporation to lease the Sungei Kadut property. There was also a related offer from JTC in relation to the assignment of the Mandai Link property to Sheng Siong’s other wholly owned subsidiary, MDL Property.
JTC’s granting of the lease of the Sungei Kadut property to CMM is conditional upon several requirements being satisfied.
The lease for the Sungei Kadut property is expected to run for 33 years, contingent upon conditions. It begins on Dec 18, 2025, but Sheng Siong will be granted possession of the property around two months before that. Rent will be free before the commencement date.
CMM is required to fulfil a declared investment of at least S$120 million within four years from Dec 18, 2025, on new plant and machinery.
The estimated investment cost for the new property is around S$520 million and will be funded by internal resources, as well as external financing, including borrowing, Sheng Siong said.
This sum covers rent for the lease term alongside costs for plant and machinery, building and construction, as well as installing solar panels, among other expenses.
Shares of Sheng Siong finished on Thursday S$0.01 or 0.5 per cent higher at S$2.11.
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