Sheng Siong Group

[CityFarmer]

From a corporate strategy point of view, it may be positive to own the asset rather than rent.

However from a ROIC point of view, the impact should be significant. And of course not forgetting their ill timed equity purchases prior to their IPO.

It is quite a different long term strategies between rent vs own for SS. I am not sure this acquisition is one-off or a long term one.

If it is long term, it will limit its growth. For retail, one of the advantages is low working capital or low start-up capital for new shops.

(not vested)