SSF Home to buy 13 acres in Pulau Indah for RM42.47m

SSF Home Group Bhd, the ACE Market-listed furniture and home décor retailer, has agreed to buy 13 acres of vacant industrial land in Pulau Indah, Klang, for RM42.47 million, or about RM75 psf. Its subsidiary SSF Sdn Bhd signed a conditional sale and purchase agreement on 26 October 2026 with the seller, IFFCO Foods Sdn Bhd, a maker of bakery ingredients and seasonings. SSF will build its own warehouse and distribution centre there, to rely less on rented space.

The land

• Titles: three plots in Mukim Klang, Daerah Klang — H.S.(D) 135832 (PT 129415), H.S.(D) 135837 (PT 129421) and H.S.(D) 135838 (PT 129422)
• Area: 52,611 sq m in total, about 566,300 sq ft or 13.0 acres; the plots are 4.49, 4.56 and 3.95 acres
• Tenure: 99-year leases expiring on 24 February 2097, about 70 years left. Any transfer, lease or charge needs the state's consent
• Use: "Industry", vacant, unencumbered
• Valuation: RM42.48 million by Jones Lang Wootton as at 29 September 2026, using the comparison method. Each plot's valuation works out to RM75 psf

The terms

• Deposit: 7% (RM2.97 million) was paid before signing. Of that, 3% went to the seller's agent, The Roof Realty Sdn Bhd, and 4% to the seller's solicitors
• Balance: a 3% retention sum on signing, then RM38.22 million (90%) within 30 days of the deal turning unconditional
• Condition: IFFCO must get the state's consent to transfer within three months; completion is expected by about February 2027
• Funding: internal funds plus bank borrowings of up to 90%, for which SSF holds a bank offer letter. Its gearing rises from zero to 22.14%
• Approval: no shareholder vote is needed; the deal's largest percentage ratio is 24.60%

Why SSF is buying

SSF had 47 outlets across 14 states and territories at 30 June 2026, served by a single warehouse in the central region. Its 2023 IPO prospectus shows it has always rented. Between 2018 and 2021 it used warehouses in Glenmarie, Sungai Buloh, Port Klang and Klang. In 2022 it moved everything into three floors of a six-storey flatted warehouse at Hap Seng Business Park, Shah Alam: 268,593 sq ft, then rented for RM4.83 million a year, or about RM1.50 psf a month.

In the 14 months to June 2026, SSF made RM193.3 million in revenue and RM10.6 million in net profit. It had no bank borrowings and RM77.6 million in cash and short-term investments.

The numbers

• Price: RM42.47 million ÷ 566,300 sq ft ≈ RM75 psf, RM4,000 below the valuation
• Earlier Pulau Indah land sales: Tri-Mode System bought 2.18 ha (about 5.4 acres) in Phase 3C from master developer Central Spectrum for RM17 million in August 2021, about RM72 psf. Colform bought 29,595 sq m (7.31 acres) from Central Spectrum for RM25.2 million in October 2025, about RM79 psf
• Large tracts are cheaper: 1MDB's 285-acre tract in Pulau Indah was expected to fetch RM40 to RM45 psf when it was offered again in 2024, The Edge reported
• With buildings: Axis REIT paid about RM195 psf of land, or RM336 psf of built-up area, for three Pulau Indah warehouses in August 2026 (our report)
• Rent against buying: the land price equals about 8.8 years of the warehouse rent SSF disclosed in 2023, before building costs. The warehouse's size and cost are not yet known
• Penang: PTT Synergy paid RM148 psf for 9.7 acres of freehold land in Seberang Perai Selatan in September 2026 for a logistics hub, about twice SSF's rate (our report)

In Penang, SSF has stores in Anson Road and Perai. It rents the Perai store, 16,221 sq ft at Jalan Chain Ferry, for RM28,000 a month (about RM1.73 psf) from Seven Star Realty Sdn Bhd, a company of managing director Wong Choong Loong and his family.