Latest news with #CenturionCorporation
Straits Times
15-07-2025
- Business
- Straits Times
Centurion chases upside Down Under with premium student housing brand amid plans to list new Reit
Find out what's new on ST website and app. Epiisod Macquarie Park will be the first in a new line of student accommodations launched on July 15 by Centurion Corporation. SYDNEY – An infinity pool, sauna and even exclusive work opportunities. These are just some of the perks residents of an upcoming student accommodation development in Sydney can expect come early 2026. Epiisod Macquarie Park will be the first in a new line of student accommodations launched on July 15 by Singapore Exchange-listed Centurion Corporation, featuring upmarket, wellness-focused amenities. The launch of the new Epiisod brand is part of a wider effort by Centurion to accelerate earnings growth and free up capital for more investments, the company told Singapore reporters it hosted in Sydney on July 15. It comes after Centurion announced a new real estate investment trust (Reit) called Centurion Accommodation Reit, for which it had applied with regulators in June to list on the SGX mainboard. The company revealed in a July 14 bourse filing the properties it will divest as sponsor of the Reit, which is still pending listing approval from SGX and the Monetary Authority of Singapore. The new Reit will comprise 14 properties: five purpose-built worker accommodation assets in Singapore, eight purpose-built student accommodation assets in Britain, and one in Australia. That portfolio is valued at around $1.8 billion, but is expected to rise to $2.1 billion upon the deferred acquisition of Epiisod Macquarie Park, which is slated to join the Reit as the 15th property once ready for occupation. Top stories Swipe. Select. Stay informed. Singapore MBS' new development part of S'pore's broader, more ambitious transformation: PM Wong Business MAS records net profit of $19.7 billion, fuelled by investment gains Business Singapore financial sector growth doubles in 2024; assets managed cross $6 trillion in a first: MAS Singapore $3b money laundering case: MinLaw acts against 4 law firms and 1 lawyer over seized properties Singapore Man charged with attempted murder of woman at Kallang Wave Mall Singapore Ex-cleaner jailed over safety lapses linked to guard's death near 1-Altitude rooftop bar Singapore SJI International resumes overseas trips amid ongoing probe into student's death in Maldives in 2024 Singapore 'Nobody deserves to be alone': Why Mummy and Acha have fostered over 20 children in the past 22 years Centurion chief executive Kong Chee Min described the Reit as a 'real asset-light strategy', as it allows the company to retain units in the Reit rather than directly owning the underlying properties. This, he added, enables capital recycling without having to resort to one-off property sales or equity fundraising that would be dilutive to Centurion's existing shareholders. Centurion plans to distribute some Reit units to shareholders as a dividend in specie on top of regular dividends after its 2026 annual general meeting, and aims to retain a 35 to 40 per cent stake in the Reit thereafter. Asked how Centurion decides which properties will go into the Reit, Mr Kong said: 'I would say, most of it, if it's suitable, we'll put into the Reit.' Centurion Accommodation Reit will also be able to acquire properties directly. The Reit's portfolio, meanwhile, is expected to consist largely of completed projects with a longer land tenure in developed markets, such as Australia, Singapore and the United Kingdom. As for the Reit's mix of student and worker accommodation assets, Mr Kong said both segments have long been part of Centurion's business and complement each other within the portfolio . Student accommodation is a very resilient market segment that tends to have much longer land tenures than property for housing workers, he added. Mr Kong added that Centurion will continue operating its existing student accommodation brand, Dwell, alongside Epiisod. Without disclosing figures, Mr Kong said Dwell would be priced around the market median for student accommodation, while Epiisod rooms would be positioned at a higher tier. There is no Dwell property in Sydney yet, but checks by The Straits Times show that a room costs around AU$400 (S$336) per person each week at Dwell Village Melbourne City. Moving forward, the company has no plans to focus on one brand over the other for student property. That said, Mr Kong added that the new projects Centurion is currently working on happen to be at sites that can be better developed as Epiisod properties. Meanwhile, any acquisitions will likely come under the mainstream Dwell brand, as it may not be feasible to refurbish existing buildings for an Epiisod offering, he added. Located steps from Macquarie University, Epiisod Macquarie Park will have 732 single rooms up for offer and available for registration from July 15 onwards. At least four more Epiisod properties are planned across Melbourne and Perth, with plans for the Reit to take ownership once they are developed. Centurion will also explore expanding to the Middle East and Europe, Mr Kong said. Centurion shares closed over 1.1 per cent higher, at $1.77 on July 15.
Independent Singapore
18-06-2025
- Business
- Independent Singapore
Centurion's REIT listing signals hope for Singapore IPOs
SINGAPORE: Singapore-based Centurion Corporation announced plans to list a Real Estate Investment Trust (REIT) on the Singapore Exchange (SGX) Mainboard on June 11. This can catalyse more initial public offerings (IPOs) in Singapore's stagnant share market. Subsequent to the announcement, Centurion's shares rose 3.4% to S$1.53 on June 11, a record high. About 2.4 million shares of the company changed hands, indicating strong investor interest. The SGX and the Monetary Authority of Singapore (MAS) are currently reviewing Centurion's submissions. The decision to list the REIT comes amid MAS efforts to boost share sales and liquidity in Singapore's equity market. The proposed REIT is backed by DBS Group and UBS. It has a portfolio of 37 accommodation assets, which includes 69,929 beds as of March 31, 2025. Focused on student and worker housing, it aims to capitalise on Singapore's infrastructure growth and the post-pandemic surge in student enrollment. At present, MAS is leading efforts to revive Singapore's equity market. The stock market has encountered issues like low liquidity and a high number of delistings (20 in 2024 compared to four IPOs). There is also an ongoing undervaluation of small- and mid-cap stocks. In February 2025, MAS's Equities Market Review Group, chaired by Minister Chee Hong Tat, launched a S$5 billion Equity Market Development Programme (EQDP). Seeking to boost liquidity and attract growth enterprises, it's among the different measures meant to bring firms back to Singapore's stock market. Singapore has the third-largest REIT market worldwide, after Tokyo and New York, with 40 S-REITs and property trusts. Together, they have a market capitalisation of about S$100 billion (US$74 billion). This accounts for 12% of SGX's total market cap. If successful, Centurion's REIT listing could pave the way for more listings, joining NTT's proposed data centre REIT listing. If both go through, they are likely to revive investor confidence and share trading in the Singapore market. The city-state's equity capital markets struggle with a lack of domestic capital anchors. In comparison, the bourses of Hong Kong, Sydney, Tokyo, and Kuala Lumpur are anchored allocations to domestic equities from public sector investors. Pension funds in Kuala Lumpur, Tokyo, and Hong Kong actively channel capital into local equities through a network of fund managers. Additionally, Malaysian insurers invest in local stocks. All this serves to create a sustainable cycle of institutional liquidity, stabilises the market and sustains investor confidence. This structural gap in Singapore's equity markets has driven weak IPO activity, market fragmentation, and losses in investor confidence.
Business Times
26-05-2025
- Business
- Business Times
Centurion seen as small-cap ‘jewel' amid demand for dormitory spaces, potential Reit listing
[SINGAPORE] With demand for foreign workers continuing to outpace the supply of dormitory spaces, Centurion Corporation is ramping up capacity and exploring asset monetisation, making it a small-cap property play to watch. This is according to RHB Bank Singapore, which highlighted Centurion as one of its top stock picks for 2025 among companies with small market capitalisation. Centurion was featured in RHB's Singapore Small Cap Jewels 2025, published on May 16. The bullish sentiment is echoed by analysts from Maybank Securities and Phillip Securities Research, who cited favourable demand-supply dynamics and a robust pipeline of expansion projects across key markets. Headquartered in Singapore, Centurion operates purpose-built worker accommodation (PBWA) in Singapore and Malaysia, and student housing in Australia, the UK, and the US. Phillip Securities analyst Yik Ban Chong noted that the group's first-quarter FY2025 revenue rose 13 per cent year-on-year to S$69 million, driven by higher rental rates for its Singapore dormitories. Contributing to this growth, said Yik, was the ramp-up of new capacity, including a 1,650-bed facility at Westlite Ubi, which became operational in late 2024 and has already reached near-full occupancy. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Meanwhile, RHB Singapore's head of small-mid cap research Alfie Yeo said in a separate May 23 note that he anticipates Centurion's earnings to rise by 4 per cent annually for FY2025 and FY2026, and 5 per cent for FY2027, on the back of stronger-than-expected bed rates and occupancy levels across its PBWA and student housing segments. While concerns linger over US-led reciprocal tariffs, Maybank analysts Eric Ong and Jarick Seet pointed out that Centurion expects minimal disruption to its business operations. They highlighted a clear capacity expansion roadmap for 2025–2026 spanning Singapore, Malaysia and Australia, aimed at striking a 'strategic balance between occupancy levels and rental rate growth'. Undemanding valuation Looking ahead, RHB's Yeo pointed to Centurion's ongoing capacity expansion and asset monetisation plans as key reasons for its positive outlook. For instance, he said in the Singapore Small Cap Jewels report that the total number of revenue-contributing beds for FY2025, he said, is expected to grow by 5.3 per cent year-on-year to 73,000, and it will be supported by Singapore's new Westlite Ubi Ave 3 and Malaysia's Westlite Johor Tech Park Centurion has also expanded into Hong Kong and China. In FY2024, the group entered these markets through two majority-owned partnerships. In China, it will manage and operate build-to-rent properties comprising around 1,500 residential apartments, targeted at fresh graduates and working professionals. In Hong Kong, it entered the worker housing market with Westlite Sheung Shui, a 539-bed facility catering to foreign workers in sectors such as food and beverage and services. More value could be unlocked over the mid to longer term, Yeo said. Centurion has previously monetised assets through sale-and-leaseback deals in Malaysia, and is now exploring a potential Reit (real estate investment trust) listing involving some of its student and worker accommodations. While still at an exploratory stage, Yeo said that the move is aimed at supporting growth, shifting to an asset-light model, and generating fee-based income. RHB also flagged the possibility of special dividends, depending on how any proceeds are used. Centurion's net gearing stood at 0.4 times in FY2024, and the business has generated over S$75 million in operating cash flow annually for the past five years, according to RHB. While it uses debt to fund property developments, the group has remained cash-generative, said Yeo. He also noted that Centurion typically pays a sustainable dividend, with a payout of S$0.025 per share in FY2023, representing around 30 per cent of earnings. This payout ratio is expected to be maintained, with occasional special dividends possible if more assets are unlocked and excess cash is not reinvested, said Yeo. Still, Yeo cautioned that RHB's earnings forecasts are premised on stronger occupancy and improved bed rates at Centurion's student accommodation assets. Any shortfall in these areas could pose downside risks to its estimates, he added. That said, Yeo said that Centurion remains a leading dormitory operator in Singapore, where a shortage of beds continues to support both occupancy and rental growth. With opportunities for further capacity expansion, he added that the stock is trading at an 'undemanding valuation' of nine times FY2025 forecast earnings, and offers a dividend yield of around 3 per cent. RHB has set a target price of S$1.50 for shares of Centurion – implying a potential upside of 11.9 per cent from its closing price of S$1.34 on Friday (May 23). In the year to date, the counter has generated a total return – with dividends reinvested – of 41.8 per cent. In comparison, the benchmark Straits Times Index has a total return of 5 per cent over the same period.
Business Times
19-05-2025
- Business
- Business Times
Two SGX listcos eye investments in Johor-Singapore Special Economic Zone: Maybank
[SINGAPORE] Singapore-listed companies Thomson Medical Group and Centurion Corporation have expressed interest to invest in the Johor-Singapore Special Economic Zone (JS-SEZ), said Maybank on Monday (May 19). The two listcos are among the Malaysian bank's three Singapore-headquartered clients that submitted letters of intent (LOIs) to the Iskandar Regional Development Authority at the JS-SEZ Partners' Dialogue: Advancing Facilitation event hosted by Malaysia's Ministry of Economy. A third company – Alpine Renewables and Edible Oils, a supplier of feedstock to biofuel producers in Europe, China, South Korea and the US – has also expressed interest in setting up facilities in JS-SEZ. The LOIs express a combined investment interest of up to RM2.35 billion (S$709.5 million) over the next three to 10 years. They 'signal confidence in the JS-SEZ's strategic value', said Khairussaleh Ramli, president and group chief executive officer of Maybank. 'These intended investments contribute to the development of the 11 JS-SEZ economic sectors, particularly in the green economy, manufacturing, logistics and healthcare, and align with the Madani Economy's aspirations of creating new growth engines, and adding high value jobs,' said Maybank. In addition to facilitating the submission of the LOIs from its Singapore clients, the bank also inked an LOI with the Malaysian Economic Ministry, outlining interests in joint efforts to promote the JS-SEZ. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The bank has also launched initiatives to position the JS-SEZ as a regional hub, including upskilling micro, small and medium enterprises in areas of supply chain and halal facilitation, Khairussaleh said. It supports clients in strategic sectors of data centres, infrastructure and semiconductors and facilitated the approval of the first single family office in Malaysia and in the Forest City Special Financial Zone, he added. Centurion, a global owner and manager of worker and student accommodation, has expressed interest to invest RM300 million to RM500 million over the next five years to double its bed capacity in the JS-SEZ. Healthcare player Thomson Medical specified 'strong interest' to invest up to RM1.5 billion over the next ten years to develop Thomson Hospital Iskandariah on a 1.5 hectare site in Stulang, Iskandar. This hospital, which will be a multi-speciality tertiary care facility, aims to create some 1,500 jobs across clinical, research, specialist physician roles and support services such as healthcare technology, said Maybank. It will feature medical centres spanning disciplines such as oncology, orthopaedics, obstetrics and gynaecology, fertility and general surgery and will incorporate artificial intelligence-assisted tools. As for Alpine Renewables and Edible Oils, it plans to invest around RM350 million over the next three years to develop renewable energy feedstock pretreatment and renewable biodiesel refinery facilities in the Tanjong Langsat Industrial Port, in anticipation of rising demand for sustainable biofuels.
Business Times
19-05-2025
- Business
- Business Times
Two SGX listcos eye investments in JS-SEZ: Maybank
[SINGAPORE] Singapore-listed companies Thomson Medical Group and Centurion Corporation have expressed interest to invest in the Johor-Singapore Special Economic Zone (JS-SEZ), said Maybank on Monday (May 19). The two listcos are among the Malaysian bank's three Singapore-headquartered clients that submitted letters of intent (LOIs) to the Iskandar Regional Development Authority (IRDA) at the JS-SEZ Partners' Dialogue: Advancing Facilitation event hosted by the Malaysian Ministry of Economy on Monday. A third company, Alpine Renewables and Edible Oils, a supplier of feedstock to biofuel producers in Europe, China, South Korea and the US, has also expressed interest in establishing a presence in JS-SEZ. The LOIs express a combined investment interest of up to RM2.35 billion (S$709.5 million) over the next three to 10 years. At the event, Maybank facilitated the submission of the LOIs from its Singapore clients and inked an LOI with the ministry, outlining interests in joint efforts to promote the JS-SEZ. The LOIs 'signal confidence in the JS-SEZ's strategic value', said Khairussaleh Ramli, president and group chief executive officer of Maybank. 'These intended investments contribute to the development of the 11 JS-SEZ economic sectors, particularly in the green economy, manufacturing, logistics and healthcare, and align with the Madani Economy's aspirations of creating new growth engines, and adding high value jobs,' said Maybank. Maybank's LOI covers four key areas of financing support, promotion and global visibility by leveraging its extensive network, collaboration on events and stakeholder engagement and research and thought leadership. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The bank has also launched initiatives to position the JS-SEZ as a regional hub, including upskilling micro, small and medium enterprises in areas of supply chain and halal facilitation, Khairussaleh said. It supports clients in strategic sectors of data centres, infrastructure and semiconductors and facilitated the approval of the first single family office in Malaysia and in the Forest City Special Financial Zone, he added. Up to RM2.35 billion of intended investments Centurion, a global owner and manager of worker and student accommodation, has expressed interest to invest RM300 million to RM500 million over the next five years to double its bed capacity in the JS-SEZ. Healthcare player Thomson Medical specified 'strong interest' to invest up to RM1.5 billion over the next ten years to develop Thomson Hospital Iskandariah on a 1.5 hectare site in Stulang, Iskandar, Malaysia. The envisaged hospital, a multi-speciality tertiary care facility, aims to create some 1,500 jobs across clinical, research, specialist physician roles and support services such as healthcare technology, said Maybank. It will feature medical centres spanning disciplines such as oncology, orthopaedics, obstetrics and gynaecology, fertility and general surgery and will incorporate artificial intelligence-assisted tools. The third company to indicate its interest, Alpine Renewables and Edible Oils, plans to invest around RM350 million over the next three years to develop renewable energy feedstock pretreatment and renewable biodiesel refinery facilities in the Tanjong Langsat Industrial Port, in anticipation of rising demand for sustainable biofuels.
