SSF Home Group Berhad (“SSF” or the “Group”), a well-known retailer in furniture, home décor, and home living products, today announced that its wholly-owned subsidiary, SSF Sdn. Bhd. (“SSFSB”), has entered into a conditional Sale and Purchase Agreement (“SPA”) with IFFCO Foods Sdn. Bhd. (“IFFCO”) for the proposed acquisition of three parcels of leasehold industrial land in Pulau Indah, Mukim Klang, Selangor, for a total cash consideration of RM42.47 million (“Proposed Land Acquisition”). The proposed investment represents a strategic step in strengthening the Group’s operational infrastructure to support its next phase of growth and expansion.
The three parcels of land, measuring approximately 52,611.13 square metres or 13 acres in total, are currently vacant and designated for industrial use. The Proposed Land Acquisition is in line with SSF’s long-term business strategy to enhance its warehousing and logistics capabilities, improve operational efficiency and support future business expansion.
Through the Proposed Land Acquisition, SSF intends to construct its own warehouse and distribution facilities, enabling the Group to progressively reduce its reliance on rented premises while providing greater flexibility in managing its warehousing and distribution operations. The strategic location of the land in Pulau Indah is also expected to facilitate more efficient logistics operations and potentially generate long-term cost savings.
Mr. Lok Kok Khong, Executive Director of SSF Home Group Berhad said, “The Proposed Land Acquisition marks an important step in SSF’s next phase of growth. By developing our own warehouse and distribution facilities, we aim to increase our warehouse capacity and achieve long-term cost savings compared with renting. This investment is expected to enhance our operational efficiency and scalability, while strengthening our asset base and reducing our exposure to rising rental costs over time, providing a stronger foundation to support our future business expansion.”
The Proposed Land Acquisition will be funded through a combination of internally generated funds and bank borrowings, with the Group having secured bank borrowings of up to 90% of the purchase consideration. Subject to the fulfilment of the terms of the SPA, the acquisition is expected to be completed within four months and is not expected to materially affect the Group’s earnings for the financial year ending 30 June 2027.
Moving forward, SSF remains committed to strengthening its operational capabilities and expanding its business presence in Malaysia. The Proposed Land Acquisition is expected to provide a stronger foundation for the Group’s long-term growth strategy, complementing its ongoing business expansion initiatives while enhancing operational flexibility and efficiency.
