STATIONERY and Office Supplies Limited (SOS) has spent $130 million to secure new warehousing space after acquiring additional property at 26 Collins Green Avenue in Kingston.

The 11,000 square foot property, which is to be used primarily for warehousing purposes, sits in close proximity to the company’s existing 34 Collins Green Avenue location which it bought in 2017. Back in 2020, the company also purchased property at 36 Collins Green Avenue but resold it in 2022 for more than twice the purchasing price after it failed to meet structural expectations.

“The difference in the properties is that for 36 that we had to resell, it was a corner lot of which the shape of it provided a big hurdle for us in trying to create something we wanted. With 26, it, however, offers a more structurally sound option and the property itself is also more convenient for building what we want on it, so we are actually now in the process of erecting a 9,500 square foot warehouse,” said managing director of SOS Allan McDaniel in response to queries from the Jamaica Observer on Tuesday.

The new warehouse structure, which has been timed for completion within a six month period, McDaniel said, forms part of the company’s extensive and strategic expansion plan which aims to increase inventory levels as it creates additional space for a new SEEK machinery that will further optimise operational efficiency.

“With this additional warehousing capacity, we expect to see an increase in revenues entering into 2025. This will come through the additional inventory, which will aid our regional expansion plans, and through a $50-million investment in new SEEK equipment, will double production output,” he said of the new space, which is to also create employment for a minimum of 15 people.

SOS, which up to the nine months ended September 2023 grew revenues to $1.5 billion and profit to $294 million, registered growth across all segments of its business, led by the performance of the SEEK manufacturing division which saw a 39 per cent increase in revenues after securing $83.1 million in sales. Last year after also producing impressive results, the company said it was on track to deliver what may go down as one of the best years in its 58-year-old history. Its audited year-end results are expected to be published soon.

McDaniel, in providing more details on the company’s latest acquisition, said that while the new property will not give it less access to the back of its Beechwood Avenue head office as was the case of the 36 Collins Green property, it is situated next door to another [lot 28] which it hopes to secure sometime in the future.

“We do have to drive off compound to get to it, but it is next door to one that will, and hopefully one day we hope to purchase that one as well so that we can join all of them. This, as our aim is to be in the same vicinity for all our locations in order for us to have tighter control of our operations,” he also said to the Business Observer.

Following continued investment in property over the last few years, the company said it has so far spent about $250 million as it moves to build out capacity and create avenues to hit new growth milestones. In 2023 alone the company invested over $120 million in its expansion efforts, which saw the construction of an additional 5,000 square ft of storage space at its Beechwood Avenue warehouse and a 3,000 square ft off-site warehouse expansion at its Montego Bay branch as well as the acquisition of a quarter acre property along West Arcadia Avenue in St Andrew.

“After the Collins Green expansion is complete, we will be able to assess the best ways to use the space which will become available at the Arcadia property. As it relates to other forms of growth and expansion, we’ll also be looking to enhance our solar energy capabilities beyond the current 75KW production to reduce our energy costs as we lower our carbon footprint and improve overall sustainability,” McDaniel further said.