MARC Ratings has affirmed its rating of A+IS on Sunsuria Berhad's RM500.0 million Sukuk Wakalah Programme. The rating outlook is stable. The total outstanding amount under the programme stood at RM106 million as at end-February 2025.

Sunsuria's conservative approach to property development, healthy overall take-up rates and low-to-moderate leverage position remain key rating drivers. Moderating factors are execution risk associated with the group's expansion into other business segments and the potential increase in inventory from lacklustre take-up for its commercial development in Setia Alam.

As at end-December 2024, ongoing projects, all of which are in the Klang Valley, had a total gross development value (GDV) of RM2.1 billion with an average take-up rate of 76.2%. MARC Ratings notes that Sunsuria had unbilled sales of RM757.1 million as at end-December 2024 which provide earnings visibility in the near term. Aside from its commercial projects, its residential projects, mainly the Bangsar Hill Park development and those in the Sunsuria City township, have generally received healthy response. This is attributed to the matured location of Bangsar Hill Park and the growing amenities, including those related to education and healthcare, in its flagship development, Sunsuria
City.

Its two ongoing commercial projects - the Sunsuria Forum Corporate Office in Setia Alam and The Chapter in Sunsuria City, Sepang - recorded an average take-up rate of 46.1%. As such, there is an increasing likelihood that inventory level, which stood at RM39.4 million as at end-December 2024 (end-March 2024: RM28.8 million), will increase to approximately RM130 million upon the upcoming completion of the Sunsuria Forum Corporate Office.

The rating agency notes that the group's business diversification efforts will not only enhance the value of its townships but also provide recurring revenue streams. Following the strategic partnership with Concord College International Limite