Jumbo invests $20m in Tai Seng logistics hub

The move secures operational stability.

Jumbo Group of Restaurants is planning to invest in its long-term home at 26 Tai Seng Street, a property it already leases for its central kitchen, logistics, and training operations.

Through a partnership with Boustead Industrial Fund (BIF), Jumbo will take a 30% stake in a special company set up to eventually buy the property, with Boustead retaining 70%.

The investment will allow Jumbo to lock in its space, reduce rental risks, and secure operational stability for facilities critical to its business.

The company plans to fund its share of the investment, approximately $20m, from its own cash reserves.

Boustead, which owns a 25% stake in BIF, stands to benefit from the deal, and if its proposed UI Boustead REIT acquires BIF, the REIT would take over Boustead’s role.

The move is modest relative to Jumbo’s overall size and is not expected to significantly affect earnings or shareholder value in the near term, according to their company announcement released to the Singapore Exchange (SGX).

The acquisition can take place after 2033, when government restrictions on the sale expire, at a fixed price of $109.5m.