Sheng Siong to expand its Mandai Link warehouse

It will add 50,000 sq ft more capacity.

Sheng Siong is set to expand its Mandai Link warehouse by another 10% following JTC's resolution on the land ownership formerly belonging to the current rail corridor.

According to DBS Vickers Securities, the current 2.32 hectares of land which JTC awarded to Sheng Siong as a result, is constructed in a U shape instead of a regular rectangle.

"This is due to the nature of land ownership when the land was awarded. Last year, the JTC resolved the rights to the former KTM railway land and Sheng Siong can now utilise the former KTM land. This means that the current U-shaped layout can be flushed into a regular rectangular-shaped building, essentially expanding the distribution centre’s capacity," the brokerage firm noted.

Sheng Siong is eyeing to add another 50,000 sq ft to its 500,000 sq ft capacity.

"With all systems clear and heavy equipment already on site, construction is due to start in June 2017 and is expected to complete in 2018. Sheng Siong will incur S$19m in construction cost with the bulk amounting to c.S$13m to be incurred in 2018, all internally funded. The warehouse will have storage capacity for both chilled and regular storage products," DBS Vickers Securities said.

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