It will add another 50,000 sqft to the capacity.
Sheng Siong is eyeing to expand its Mandai Link warehouse by another 10% as it plans to grow its capacity.
According to DBS Group Research, when Sheng Siong constructed its present distribution centre at Mandai in 2009, a part of the land next to which the building sits on belonged to the current rail corridor.
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.
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," DBS Group Research explained.
Flushing the building into a regular rectangle from a U-shaped layout will add another 50,000 sqft to the warehouse capacity for both chilled and regular storage products.
The brokerage firm noted that 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.
Due to the planned expansion, Sheng Siong will incur $19m in construction cost, with the bulk amounting to around $13m to be realised in 2018.
Do you know more about this story? Contact us anonymously through this link.