Westlite dorm owner Centurion unveils $1.8 billion portfolio for new Reit to be listed on SGX

SINGAPORE – Accommodation provider Centurion Corp unveiled on July 14 its $1.8 billion portfolio of a new real estate investment trust (Reit) which it had earlier applied to be listed on the Singapore Exchange (SGX) mainboard.

In a July 14 bourse filing, mainboard-listed Centurion, which owns and operates the Westlite group of workers’ dormitories, among other properties, named the Reit as Centurion Accommodation Reit.

The new Reit comprises 14 properties: five purpose-built worker accommodation assets in Singapore, eight purpose-built student accommodation assets in Britain, and one in Australia.

It will subsequently acquire one more student property, located in Sydney, Australia, when it is ready for occupation, bringing the total to 15.

This property is estimated to be operational in 2026 and its acquisition will raise the portfolio value to $2.1 billion.

The Reit will invest in a portfolio of income-producing real estate assets which are primarily used as purpose-built worker accommodation or student accommodation or for other longer-stay purposes.

Centurion will hold units of the Reit worth around $687 million and intends to disburse some of these units to its shareholders after its next annual general meeting in 2026.

Centurion called for a trading halt on July 14.

It had previously announced on June 10 its Reit listing application to SGX and the Monetary Authority of Singapore (MAS).

The proposed listing is subject to SGX and MAS approval.

Centurion Asset Management, which Centurion will wholly own, will be the Reit manager, while Perpetual (Asia) will be the trustee.

In the latest announcement, Centurion also outlined various agreements it made to allow the Westlite Mandai, Westlite Juniper and Westlite Ubi dorms to be included in the Reit portfolio.

Centurion will divest its 100 per cent interest in Westlite Toh Guan, 100 per cent interest in Westlite Woodlands and 51 per cent interest in Westlite Ubi to the Reit.

Lian Beng Group will divest the remaining 49 per cent interest in Westlite Ubi to the Reit too.

For Westlite Mandai, Lian Beng-Centurion (Dormitory) will surrender its existing lease to Lian Beng-Centurion (Mandai), of which Centurion owns 45 per cent. In turn, Lian Beng-Centurion (Mandai) will grant a 32-year lease to the Reit, with an option to renew for 30 years.

For Westlite Juniper, also located in Mandai, the Reit will be granted a 50-year lease. The Reit will also take over the existing tenancy agreements at Westlite Mandai and Westlite Juniper.

The Centurion group will divest its 100 per cent stake in East End Adelaide in Australia to the Reit too.

Centurion also said that based on a preliminary assessment of its unaudited consolidated management accounts for the half year ended June 30, and information currently available, it is expected to report a significant profit increase.

This increase arises from fair value gain on the group’s investment properties compared with the valuations on its books as at Dec 31, 2024, it said.

Centurion’s move comes amid a flurry of renewed investor interest in Reits buoyed by soaring property prices and a moderating interest rate environment, spurring large distribution yields.

Centurion shares closed one cent or 0.6 per cent lower at $1.75 on July 14.