SATS has entered into an agreement with JTC Corporation to terminate its lease at Bulim Lane.
On March 11, 2022, SATS announced that it agreed to a 30-year lease term at Bulim Lane, within the Jurong Innovation District for its food hub. The lease commenced on June 1, 2022.
At the time, the group was operating its institutional catering business at several JTC-leased premises at 210, 212 and 234 Pandan Loop. The operations would have been transferred from the properties in Pandan Loop to the food hub. In its March 2022 release, the group said that the hub’s total development would have costed $150 million. The total land rent for the 30-year lease was estimated to be at $42.6 million.
In its July 23 statement, SATS noted the rising construction and labour costs due to higher cost of materials and inflation due to the disruptions in the global supply chain. As such, the group engaged JTC and “other relevant parties” on plans for its food hub “as part of a longer-term review”.
However, SATS says its vision of the food hub remains, and it is “committed” to building the hub operations in Singapore.
“This will help SATS meet the growing demand for non-aviation food solutions through the application of enhanced food technology, digitalisation and open innovation to deliver integrated, high-value customisable and culinary solutions that are sustainable,” says the group.
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The group is currently looking at “identified sites” to relocate its proposed hub to an alternate location.
Shares in SATS closed 2 cents higher or 0.62% up at $3.23 on July 23.
