Bakery manufacturer and retailer SDS Group Bhd is expanding its production capacity with plans to acquire a 14.3-hectare freehold industrial site in Johor Bahru for RM101.7 million, according to a filing with Bursa Malaysia.
The land is strategically located directly opposite the group’s existing operational facilities, allowing SDS to consolidate operations and improve logistical efficiency through the development of a new large-scale manufacturing plant.
The purchase will be undertaken by SDS’s wholly owned subsidiary, London Bakery Sdn Bhd, from Kempas Green Development Sdn Bhd, a company majority-owned by businessman Toh Thim Leong.
An independent valuation conducted by Cheston International (Johor) Sdn Bhd placed the market value of the land at RM102 million as at Dec 31, 2025. The agreed purchase price represents a marginal discount to valuation, reflecting current market conditions for sizeable industrial parcels.
Completion of the transaction is subject to shareholder approval at an extraordinary general meeting, with the group targeting completion in the second half of 2026.
SDS’s move highlights continued demand for large-scale industrial sites suitable for manufacturing expansion, particularly in established industrial corridors with existing infrastructure. Similar trends are evident in the Klang Valley, where limited availability continues to support pricing for industrial land in Selangor, especially in mature zones such as Puchong and the Subang area.
For manufacturers unable to secure contiguous land parcels in Selangor, regional locations such as Johor Bahru are increasingly viewed as viable alternatives, while headquarters functions and support offices remain anchored in commercial property in KL and decentralised office hubs like office space in Bukit Jalil.
Shares in SDS Group closed 1.5 sen lower, or 2.26%, at 68 sen on Friday, giving the company a market capitalisation of approximately RM368.6 million. The share price movement reflects broader market sentiment rather than transaction-specific concerns, as investors continue to assess capital expenditure and expansion strategies across the consumer and manufacturing sectors.
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