Centurion Corporation's indirect wholly-owned subsidiary, Centurion Overseas Investments (II) (COI(II)PL), has entered into a subscription and shareholders agreement with Lachlan Avenue Development (LAD), according to an Oct 15 release.
Under the agreement, the group is set to subscribe for 2.5 million shares, representing a 25% equity interest in LAD, for a purchase consideration of A$2.5 million ($2.19 million).
Following the completion of the share subscription, COI(II)PL and Centurion Properties Australia Investments (CPAI), a wholly-owned subsidiary of the group, will hold 25% and 75% of LAD respectively.
COI(II)PL and CPAI will also hold interest in a new student accommodation development project in Australia at 25% and 75%, respectively.
The development project is expected to be developed into a 732-bed purpose-built student accommodation. Construction work for the development project has since commenced and is set to be completed in December 2025.
Additionally, COI(II)PL and CPAI have also entered into a loan agreement to finance development costs and working capital requirements for the development project.
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COI(II)PL is set to provide shareholder loans of up to A$9.54 million to LAD, based on its 25% shareholding interest in LAD.
On a pro forma basis, had the transactions been completed on Dec 31, 2023, the group’s net tangible assets (NTA) for FY2023 would have remained unchanged at $825.8 million, or an NTA per share of 98.21 cents.
Had the transactions been completed on Jan 1, 2023, the group’s earnings for FY2023 would also have remained unchanged at $153.1 million. Earnings per share stood at 18.21 cents.
Shares in Centurion closed 1 cent lower, or down 1.16%, at 85.5 cents on Oct 15.
