Coffee-shop operator Kimly plans to acquire a coffee-shop property at Teck Whye for S$14 million, marking its first site in northwest Singapore, the company said in a filing to SGX Wednesday.
Jin Wei Food Holdings, Kimly’s wholly owned subsidiary, has acquired all of Teck Whye 143 Food House for S$10,000, Kimly said. In January, TW143 had exercised an option to purchase the property, with the deal expected to be completed at the beginning of November, the filing said.
Kimly said it will fund the acquisition with a combination of internal resources and external financing.
The property, which has a strata floor area of 224 square meters, is a coffee shop with seven stalls, including a drinks stall, two kiosks and an outdoor refreshment area, Kimly said, adding it was located near the Keat Hong, Tech Whye and Phoenix LRT stations
Kimly said it would manage the property and operate mixed vegetable rice, dim sum and drinks stalls there.
“The acquisition is in line with the group’s strategy to expand its business to further expand our network of food outlets in Singapore and to establish new food outlets and food stalls,” Kimly said, adding it was also shifting its strategy to explore opportunities to own the properties where its food outlets are operated.
“This strategy will enable the group to mitigate uncertainty surrounding its private leases, which can be influenced by expectations from owners and market competition,” it added.
TW143, located at 143 Teck Whye Lane, has a 93-year leasehold title, which began in 1992, the filing said.
The deal boosts Kimly’s Singapore coffee-shop footprint to 70, the filing said.
The seller of TW143 is Lim Hee Liat, Kimly’s executive chairman and a controlling shareholder, the filing said.