PETALING JAYA (July 8, 2026): Rhong Khen International Bhd (RKIB) is expanding its manufacturing capabilities through the acquisition of three industrial properties in Kapar, Selangor, for a total cash consideration of RM47 million.
The acquisition, carried out through its wholly-owned subsidiaries Uptown Promenade Sdn Bhd (UPSB) and Latitude Tree Furniture Sdn Bhd (LTFSB), is aimed at consolidating its furniture manufacturing operations, improving operational efficiency and creating greater synergies between its existing facilities.
Acquisition of three industrial properties
According to a Bursa Malaysia filing, UPSB and LTFSB entered into three separate sale and purchase agreements (SPAs) with Hsin Foong Manufacturer Sdn Bhd (HFMSB) and Kelana Sempurna Sdn Bhd (KSSB) on July 7, 2026.
The three industrial properties are located along Batu 8 to Batu 8录, Jalan Kapar, Selangor, and include:
1. Lot 512, Batu 8录, Jalan Kapar
Freehold industrial property.
Comprises a two-storey office building and a single-storey factory.
Built-up area of approximately 108,000 sq ft.
Land area of approximately 1.4594 hectares.
Purchase consideration: RM21 million.
2. Lot 513, Batu 8录, Jalan Kapar
Freehold industrial property.
Single-storey factory building.
Built-up area of approximately 99,000 sq ft.
Land area of approximately 1.4594 hectares.
Purchase consideration: RM17 million.
3. Lot PT5906, Batu 8, Jalan Kapar
Leasehold industrial property expiring in 2069.
Single-storey factory building.
Built-up area of approximately 110,000 sq ft.
Land area of approximately 1.0775 hectares.
Purchase consideration: RM9 million.
Together, the properties provide additional factory and office capacity located close to RKIB's existing manufacturing facilities and headquarters.
Strategic move to consolidate operations
RKIB said the acquisition aligns with its long-term strategy to consolidate its upstream and downstream furniture operations in Malaysia.
The properties are located approximately 1.5 km from the group's existing factories and head office, allowing the company to improve operational coordination, reduce logistics complexity and achieve greater cost efficiency.
Rather than acquiring vacant industrial land for future development, RKIB is securing ready-built factories that can immediately support its manufacturing activities.
Purchase price and funding
The total purchase consideration of RM47 million will be paid entirely in cash.
The payment structure includes:
RM10 million deposit, including a RM1 million earnest deposit, payable upon execution of the agreements.
RM37 million balance payment within four months from the agreement date, with a possible one-month extension.
The acquisition will be funded through a combination of internally generated funds and bank borrowings.
The final funding mix will depend on the group's gearing position, financing costs and internal cash requirements.
Transaction terms and approvals
The acquisition remains subject to relevant government approvals, including:
Consent to transfer ownership of the properties.
Required foreign acquisition approval.
Upon obtaining the necessary approvals, the transactions will become unconditional.
The sale excludes machinery, equipment, furniture and fittings belonging to the vendors.
Vacant possession will be delivered within five days after the vendors receive the balance purchase price.
Limited financial impact expected
RKIB stated that the acquisition will not affect the company's share capital or substantial shareholders' holdings.
The transaction does not require shareholder approval, although regulatory approvals for the property transfers are required.
The company expects the acquisition to have no material impact on:
Earnings per share.
Net assets per share.
Gearing level for the financial year ending June 30, 2027.
The highest percentage ratio under Bursa Malaysia's Main Market Listing Requirements is approximately 7.17% based on RKIB's FY2025 audited financial statements.
Completion is expected within four months, with a possible one-month extension after receiving the required approvals.
Key Takeaways
Rhong Khen International is acquiring three industrial properties in Kapar for RM47 million to support its furniture manufacturing operations.
The acquisition focuses on ready-built factories near existing facilities, rather than undeveloped industrial land.
The properties provide additional factory and office space within approximately 1.5 km of RKIB's current operations, improving logistics and operational coordination.
The transaction supports RKIB's strategy to consolidate manufacturing activities and improve long-term cost efficiency.
The acquisition price was negotiated based on market comparisons and management's assessment of industrial property values in the area.
Funding through a combination of internal resources and bank borrowings allows RKIB to preserve financial flexibility while expanding capacity.
The deal highlights how manufacturers can use industrial property acquisitions as a strategic tool to enhance production efficiency, supply chain management and long-term business growth.
Malaysia