Centurion expands in Malaysia with acquisition of Johor dorm operator for $33.7m
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Centurion’s expansion in Malaysia follows plans to sponsor the listing of a real estate investment trust on the SGX mainboard in September.
ST PHOTO: ALPHONSUS CHERN
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SINGAPORE – Accommodation owner and operator Centurion Corporation has bought Johor-based workers’ dormitory provider Harum Megah Resources, making it the latest Singapore company to tap into the region’s investment fervour.
In a Sept 2 statement, Singapore Exchange-listed Centurion said the RM110.8 million (S$33.7 million) acquisition is part of a potential RM300 million to RM500 million investment in the Johor-Singapore Special Economic Zone (JS-SEZ), following a letter of intent it signed with a state investment authority in May.
“The acquisition marks a significant step in advancing this strategy, expanding Centurion’s footprint in Malaysia with strong operational assets that meet regulatory requirements and the housing needs of employers and migrant workers in Johor,” the statement said.
Harum Megah’s portfolio of six purpose-built worker accommodation properties across Johor will add nearly 7,200 beds to Centurion’s Malaysian portfolio, raising the total by 25 per cent to about 35,600 beds.
“Located in mature industrial estates, the six assets benefit from (a) strong migrant workforce catchment, supported by healthy occupancies and an established customer base, and will be immediately accretive to the group’s earnings,” Centurion said.
Centurion, whose portfolio includes the Westlite brand of dorms in Singapore and student properties in Australia and Britain, said it bought all the issued shares of Harum Megah through its wholly owned subsidiary in Malaysia.
All six assets are fully operational, licensed as centralised labour quarters, and developed and operated in compliance with Malaysian laws on housing standards for workers, it added.
Centurion chief executive Kong Chee Min said: “The properties will accrete to the group’s revenue immediately and position us well to meet the growing demand for quality, compliant accommodation.”
He added: “Looking ahead, we remain optimistic about Malaysia’s long-term growth potential and committed to deepening our presence in support of the JS-SEZ and beyond.”
Centurion’s deal comes just over a week after healthcare services provider Thomson Medical Group unveiled plans for a major new development
The business and investment zone, spanning the Iskandar Development Region and Pengerang, is projected to generate 20,000 skilled jobs for residents on both sides of the Causeway.
Centurion’s expansion in Malaysia follows plans to sponsor the listing of a real estate investment trust (Reit) on the SGX mainboard in September.
Centurion Accommodation Reit will initially comprise 14 purpose-built student and workers’ accommodation assets in Singapore, Britain and Australia worth $1.8 billion.
Another student accommodation property will be added to the portfolio when its acquisition is completed, taking the portfolio’s value to about $2.1 billion.
An extraordinary general meeting to vote on the listing of the Reit will be held on Sept 10.
Mr Kong told reporters in August that the Reit would not feature Malaysian properties, given emerging market risk, but the listco will continue expanding its portfolio in the country.
Shares of Centurion closed at $1.76, up 1.7 per cent, on Sept 3.
