Sats to spend S$150m on new food hub

MAINBOARD-LISTED inflight caterer and ground handler Sats S58 announced on Friday (Mar 11) that it will spend about S$150 million to develop a food hub for its existing institutional catering businesses.

Sats has accepted an offer from JTC Corporation for a property with a 30-year lease term within the Jurong Innovation District to operate the hub. The cost of the total land rent the period of the lease, commencing Jun 1, is estimated at S$42.6 million.

Sats now runs its institutional catering businesses at several JTC-leased premises in Pandan Loop; these operations will eventually move to the new hub. Advanced food manufacturing with automation and Internet of Things capabilities will be deployed for operational efficiency there, said Sats.

The facility will also feature an open innovation platform to test-bed new products and services, as well as channels to commercialise viable food solutions in new markets.

The development of the hub and the lease agreement are not expected to have a material impact on the consolidated net tangible assets and earnings per share of the company for the financial year ending Mar 31, 2022, said Sats.

It shares ended Friday at S$3.92, up S$0.02 or 0.5 per cent.