Jumbo Group to co-invest up to S$20.1m in Tai Seng central kitchen site via JV at S$109.5m property valuation
Summary:
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Jumbo Group’s wholly owned unit JGOR has signed a framework agreement with the trustee of Boustead Industrial Fund to form an SPV, in which Jumbo will hold 30% and the BIF trustee 70%, to acquire 26 Tai Seng Street, Singapore, for S$109.5 million (ex-GST).
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JGOR plans to inject about S$20.1 million, funded from internal resources, to capitalise the SPV, covering its equity stake plus stamp duty and related costs, with the balance of the acquisition to be funded by external financing.
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The SPV will enter into a put and call option to buy the JTC leasehold property after the assignment prohibition period ends on 10 April 2033, with completion subject to regulatory and financing conditions; JGOR also secures a right of first refusal and the ability to partner a third party if a competing offer emerges.
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The property already houses Jumbo’s central kitchen, logistics and training facilities, and the investment is aimed at securing long-term operational stability, mitigating rental volatility and relocation risk, while having no material pro forma impact on FY2025 NTA or EPS.
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The S$20.1 million commitment represents about 11.5% of Jumbo’s market capitalisation under Catalist Rule 1006(c), classifying the deal as a disclosable transaction that does not require shareholder approval, and the company cautions there is no certainty the investment will complete.