Centurion Corporation, on Jan 6, announced that it is exploring establishing a REIT.
The REIT will comprise some of the group’s workers and student accommodation assets. The proposed REIT will be sponsored by Centurion and listed on the Mainboard of the Singapore Exchange Securities Trading Limited (SGX-ST), the company revealed.
Centurion will be working with DBS Bank and UBS to explore the proposed transaction.
In line with the proposed listing, Centurion is considering distributing a dividend in specie of some of the units in the proposed REIT to its shareholders.
The details are currently “being explored”. The listing is also subject to approval by SGX and the Monetary Authority of Singapore (MAS).
This isn't the first time Centurion has proposed to list some of its properties on the market via a REIT. On Jan 16, 2015, the company made a similar announcement, except that the proposed REIT listing at the time will include some of the company's workers accommodation assets.
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Back then, the company engaged Barclays, United Overseas Bank (UOB) and UOB Kay Hian to explore the proposed transaction. On March 20, 2015, however, Centurion announced that it had to defer and postpone its proposed transaction "to a later stage".
The March 2015 announcement came after consultations with the SGX, where the exchange said that the proposed listing would be considered a "chain listing" under Rule 210(6) of the listing manual. Under this rule, parent companies or subsidiaries of an existing listed issue "will not normally be considered suitable for listing if the assets and operations of the applicant are substantially the same as those of the existing issuer".
As of Sept 30, 2024, Centurion owns and manages a portfolio of 34 operational accommodation assets totalling some 66,660 beds. The company's workers accommodation assets are managed under the “Westlite Accommodation” brand and comprises nine workers accommodation assets in Singapore and eight assets in Malaysia. Its student accommodation assets are managed under the “dwell” brand, with ten assets in the UK, three assets in US, two assets in Australia, and two assets in China.
Shares in Centurion closed 1.5 cents higher or 1.59% up at 96 cents on Jan 7.
