KUALA LUMPUR: MARC Ratings has affirmed its AAAIS rating on PNB Merdeka Ventures Sdn Bhd’s (PNBMV) Merdeka Sukuk Wakalah Programme of up to RM6bil, with a stable outlook.
The rating agency, in a statement, said the rating is equalised with the AAA/Stable corporate credit rating of Permodalan Nasional Bhd (PNB), based on publicly available information.
It said the equalisation reflects PNB’s unconditional and irrevocable rolling guarantee to cover any shortfall in principal and profit payments under the sukuk programme.
PNBMV, a wholly owned subsidiary of PNB, is undertaking the 40-acre Merdeka 118 development in Kuala Lumpur.
The development includes the 118-storey Menara Merdeka Maybank, a retail mall and sites earmarked for two residential towers and a serviced apartment building.
PNBMV is also the landowner and custodian of Stadium Merdeka and Stadium Negara, both of which are listed as National Heritage sites.
MARC Ratings said PNBMV has leased all 84 floors of office space in the tower to PNB under a triple net master lease agreement, under which PNB bears property-related expenses in addition to rental and service charges.
About 70% of the office tower's 1.6 million sq ft of net lettable area has been sub-leased, comprising 40% or 33 floors to Maybank, 20% to PNB and about 10% to other tenants.
Occupancy is expected to rise to about 90% over the next five years, while the office tower is projected to generate annual net property income of about RM137mil.
For the 750,324 sq ft retail mall, lease agreements covering 81% of its net lettable area have either been signed or are under negotiation, at an indicative average rental rate of RM11.92 per sq ft. The mall is expected to open in November.
Meanwhile, two residential apartment buildings with a combined estimated gross development value (GDV) of RM2bil are targeted for launch in the first half of 2027.
A serviced apartment component, with an estimated GDV of RM745mil, is planned for a later launch.
MARC Ratings noted that the residential and serviced apartment components are exposed to demand risk due to competing developments in Kuala Lumpur.
The Merdeka 118 development has incurred RM10.6bil in development costs to date, while the upcoming residential projects are expected to require another RM1.4bil, funded through a combination of borrowings and equity injections.
MARC Ratings said recurring income from the completed development could reach RM500mil to RM600mil annually over the medium term.
