SINGAPORE (Nov 15): Sheng Siong Group announced Friday it is acquiring commercial premises at 118 Aljunied Avenue 2 for $29.5 million.

The property comprises units in the first and second storeys of a seven-storey Housing and Development Board (HDB) commercial property with a four-storey public carpark annex.

It has a gross floor area of approximately 2,717 sqm, with a leasehold tenure of 86 years commencing from July 1, 1993.

The property is located within walking distance from Aljunied MRT station and in close proximity to Geylang Polyclinic, NTUC Health Nursing Home (Geylang East) and Aljunied Industrial Estate.

Sheng Siong says the proposed acquisition would enable the group to open an additional store, in line with its strategy to operate supermarkets in areas where potential customers reside.

The proposed acquisition will be funded by internal funds.

In the latest 3Q19 ended September, Sheng Siong had reported a 15.9% jumped in earnings to $20.5 million, as revenue rose 11.4% to $253.8 million.

The increase was mainly attributable to the addition of 13 new stores in Singapore since last year, while comparable same store sales contracted marginally during the quarter as a result of poor consumer sentiment.

As at end-September, the group had cash and cash equivalents of $82.6 million.

See: Sheng Siong reports 15.9% rise in 3Q earnings to $20.5 mil on new store openings

As at 3.56pm, shares in Sheng Siong are trading 1 cent higher at a 52-week peak of $1.22. The counter has climbed nearly 20% since its recent low of $1.02 in May.