MARC RATINGS AFFIRMS RATING OF AIS ON HCK'S RM2.0 BILLION SUKUK PROGRAMME

MARC Ratings has affirmed its rating of AIS on HCK Cap Access Berhad's RM2.0 billion Islamic Medium-Term Notes (IMTN) Programme. HCK Cap Access is a wholly-owned funding vehicle of HCK Capital Group Berhad (HCK). The rating outlook is stable.

HCK's credit profile is characterised by the group's track record, property developments catalysed by nearby or integrated education establishments, and its sizeable development pipeline. Counterbalancing these strengths are its modest unbilled sales, project execution and market risks associated with recent and upcoming launches, as well as weak cash flow generation and increasing leverage due to its current development cycle.

The group's ongoing developments continue to benefit from its niche education-centric development strategy, which
integrates educational institutions within its townships. Demand for its residential developments has been supported by accommodation needs among students, families and professionals associated with nearby international schools, colleges and universities. The group's completed developments have generally demonstrated strong take-up rates, with completed phases of Edusphere, Edusentral and Edumetro recording high take-up rates as at 1H2026. Management highlighted that demand at Edumetro in Subang Jaya remains encouraging, supported by the presence of SEGi College in the vicinity, with accommodation demand continuing to outpace available supply.

As at 1H2026, HCK's ongoing developments comprised Edusentral, Edumetro, e.Sentral SmartCity and HCK Tower, with a combined launched gross development value (GDV) of RM922 million. While Edusentral's Harvard high-rise project has achieved a strong take-up rate of 79%, sales at the more recently launched e.Sentral SmartCity near Subang Airport and HCK Tower in Damansara Perdana have remained modest at 55% and 22%, respectively. Nevertheless, management expects sales mo