Buying a leasehold factory in Klang or Pulau Indah: what to check from offer to completion

Why tenure matters in Pulau Indah

Brickz describes Pulau Indah Industrial Park as a leasehold project, and every deal it recorded there in 2025-26 was leasehold. When Colform bought a 7.31-acre plot in the park in October 2025, it was on a 99-year lease. Do not assume every plot has the same term; read the title.

A leasehold title gives you the land for a fixed number of years. When the lease ends, the land returns to the state unless the lease is extended or renewed. That is why the years remaining affect both value and financing. How the two tenures compare on price, financing and consent is in our freehold vs leasehold guide. FactoryHub also has a full guide to freehold vs leasehold factories and land.

Check the years remaining

The expiry date is printed on the title. Work out the years left from today, and from the date you expect to sell or refinance. Banks look at the remaining lease when deciding the loan amount and tenure, and each bank has its own policy, so ask your banker early with the actual expiry date.

A shorter remaining lease usually means a lower price per sq ft and a smaller pool of buyers when you sell. If the lease is short, ask the land office or your lawyer about the process and cost of extension. Lease extension or renewal is at the state's discretion and involves a premium set by the state.

State consent and restrictions in interest

Many leasehold titles in Selangor carry a restriction in interest, which means the state authority must consent before the land is transferred, charged to a bank or leased. Your lawyer applies for consent after the sale and purchase agreement is signed, and completion waits for it. Processing time varies, so build it into your timeline and the SPA completion period.

Ask for a copy of the title at the start and have your lawyer run an official search. It shows the registered owner, any existing charge, caveats, the restriction in interest and the express conditions.

Land use, building approvals and power

The title's land use category and express conditions decide what you can do on the land. Check that your activity fits, especially for heavy industry, chemicals or food processing. For a built factory, ask for the Certificate of Completion and Compliance (CCC), or the Certificate of Fitness for older buildings, and make sure any extensions were approved.

Power is often the deciding factor. Confirm the existing supply in amps or kVA, whether there is a substation on site, and how long an upgrade would take if you need more. Check ceiling height, floor loading and truck access against your operation too. The factory for sale page lists the specs for current units.

Stamp duty and running costs

Stamp duty on the memorandum of transfer is charged on the purchase price, or the market value if higher, on a tiered scale. On a RM3.2 million factory it works out to RM1,000 + RM8,000 + RM15,000 + RM88,000 = RM112,000. On a RM6.2 million plot it is about RM232,000.

Running costs include quit rent to the land office and assessment to the local council every year, plus fire insurance and maintenance. Ask the seller for the latest receipts so you know the amounts and that nothing is in arrears.

• First RM100,000: 1%
• RM100,001 to RM500,000: 2%
• RM500,001 to RM1,000,000: 3%
• Above RM1,000,000: 4%

Steps from offer to completion

The usual sequence for a leasehold industrial purchase is below. Your lawyer and banker will confirm the details for your case.

• 1. Get the title copy and specs; check lease expiry, land use, power and CCC.
• 2. Sign a letter of offer with an earnest deposit, subject to contract.
• 3. Lawyer runs the official title search and drafts the SPA.
• 4. Apply for the loan with the actual lease expiry date.
• 5. Sign the SPA and pay the balance deposit.
• 6. Lawyer applies for state consent to transfer and to charge.
• 7. Pay stamp duty, settle the balance and register the transfer.
• 8. Take vacant possession and transfer utilities.