RAM Ratings affirms ratings of AC First Genesis’ Sukuk Ijarah backed by Aman Central Mall

Published on 07 Aug 2023.

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RAM Ratings has affirmed the ratings of the Class A and Class B First Tranche Sukuk Ijarah (collectively, the Senior Sukuk) issued under AC First Genesis Berhad’s (the Issuer) RM3 bil Sukuk Ijarah Programme (see table). The Senior Sukuk is backed by Aman Central Mall (the Mall), an eight-storey retail mall in Alor Setar, Kedah. The Issuer is a trust-owned special-purpose vehicle incorporated to facilitate the securitisation exercise under the sukuk programme.


LTV = Loan to value
FSCR = Finance service coverage ratio


The rating action is premised on our expectation that the Mall’s net property income (NPI) will gradually improve to match RAM’s annual sustainable cash flow assumption of RM41 mil within the next two years. Based on the Mall’s adjusted valuation of RM468.57 mil, resultant LTV ratios and stressed FSCRs for the Class A and Class B sukuk remain supportive of their respective rating. 

The Mall recorded a solid performance during the review period. In FY Dec 2022, revenue jumped 13% to RM57.55 mil, thanks to significant increases in variable rent, carpark and promotion income. Average occupancy and rental rates were stronger at 80% and RM6.21 psf, respectively (FY Dec 2021: 79% and RM5.92 psf). Excluding the one-off capital expenditure, NPI stood lower y-o-y by 1% to RM33.13 mil owing to higher operating expenses. We anticipate Aman Central Mall’s performance to further benefit from ongoing asset enhancement initiatives that are expected to be completed by the end of this year.

In regard to remaining conditions subsequent required to be met by 20 June 2023 (click here), the land office in May 2023 granted the Originator, Great Realty Sdn Bhd, a 50% reduction in the Memorandum of Transfer (MOT) registration fee (from RM3.75 mil to RM1.88 mil) and a waiver of the late payment penalty. However, as Great Realty has appealed for a further reduction of the fee, given that it is still hefty relative to other states’ (e.g., RM6,000 in Pahang), the Issuer has requested another four-month extension until 20 October 2023 to comply with the said conditions subsequent. Until these are met, no profit payment on the Subordinated Class D Sukuk may be made. The Issuer will also, among others, earmark RM1.88 mil in the Revenue Account for the payment of the MOT registration fee and provide an irrevocable and unconditional written instruction to the Security Trustee to pay the fee if the registration of the MOT and land charge is not completed by 20 October 2023. The proposed time extension is not viewed to have any immediate impact on the ratings, considering material progress achieved to date. We will continue to monitor developments on this front.

The transaction’s ultimate sponsor is Belleview Group, a niche property developer in the northern region with a track record dating back to 1984. Its core business encompasses the development of residential properties, townships, offices, shopping malls and asset management for sale and investment. Aman Central Mall was previously held via the Group’s wholly owned subsidiary, Great Realty, before being securitised under the sukuk programme in May 2021.


Analytical contacts
Liew Kar Ling
(603) 3385 2586

Lim Chern Yit
(603) 3385 2528


The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.

RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.

Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.

Published by RAM Rating Services Berhad
© Copyright 2023 by RAM Rating Services Berhad

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Ratings on AC First Genesis Berhad