HCK Capital Sells Majority Stake in Dengkil Land for RM61m to Streamline Operations
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September 28, 2025
KUALA LUMPUR (Sept 26, 2025) – HCK Capital Group Bhd (KL:HCK) has announced plans to sell a majority stake in its Dengkil landholding company to strengthen its financial flexibility and focus on core subsidiaries.
The property developer is disposing of a 51% equity interest in Andaman Daya Sdn Bhd, the owner of 58,308 square metres of leasehold land in Dengkil, Selangor, to Sinar Pavilion Sdn Bhd for RM61 million cash. After the transaction, HCK Capital will retain a 49% stake in the unit.
Sinar Pavilion is owned by Morgan Yung Sze Kiong (95%) and Joseph Wong Fook Ming (5%).
HCK Capital said proceeds from the disposal will be used to fund upcoming property development activities, support working capital, and pare down borrowings. The group expects to record a net gain of RM75.91 million, which includes both disposal gains and a fair value adjustment on its remaining stake in Andaman Daya.
The disposal reflects HCK’s ongoing restructuring to streamline operations, optimise resources and enhance profitability. This move also follows the group’s recent joint venture deal aimed at unlocking value in its land bank through collaborations with strategic partners.
Analysts view both transactions as part of HCK’s broader strategy to de-risk its development pipeline while maintaining upside potential via retained stakes. By leveraging partnerships and asset reallocation, HCK is positioning itself to improve operational efficiency and capture long-term growth opportunities.
The deal is expected to complete within nine months, subject to approval of the building plan for the first development phase on the Dengkil site. The land’s location in Selangor offers strong long-term development prospects, especially given rising demand for affordable and mid-range housing in the Klang Valley fringe.
HCK Capital’s shares closed at RM2.20 on Friday, up one sen or 0.46%, giving the group a market capitalisation of RM1.37 billion.
The property developer is disposing of a 51% equity interest in Andaman Daya Sdn Bhd, the owner of 58,308 square metres of leasehold land in Dengkil, Selangor, to Sinar Pavilion Sdn Bhd for RM61 million cash. After the transaction, HCK Capital will retain a 49% stake in the unit.
Sinar Pavilion is owned by Morgan Yung Sze Kiong (95%) and Joseph Wong Fook Ming (5%).
Proceeds and Financial Impact
HCK Capital said proceeds from the disposal will be used to fund upcoming property development activities, support working capital, and pare down borrowings. The group expects to record a net gain of RM75.91 million, which includes both disposal gains and a fair value adjustment on its remaining stake in Andaman Daya.
Strategy and Synergy with JV Plans
The disposal reflects HCK’s ongoing restructuring to streamline operations, optimise resources and enhance profitability. This move also follows the group’s recent joint venture deal aimed at unlocking value in its land bank through collaborations with strategic partners.
Analysts view both transactions as part of HCK’s broader strategy to de-risk its development pipeline while maintaining upside potential via retained stakes. By leveraging partnerships and asset reallocation, HCK is positioning itself to improve operational efficiency and capture long-term growth opportunities.
Timeline and Development Potential
The deal is expected to complete within nine months, subject to approval of the building plan for the first development phase on the Dengkil site. The land’s location in Selangor offers strong long-term development prospects, especially given rising demand for affordable and mid-range housing in the Klang Valley fringe.
Market Performance
HCK Capital’s shares closed at RM2.20 on Friday, up one sen or 0.46%, giving the group a market capitalisation of RM1.37 billion.
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