Centurion Corporation, through its indirect wholly-owned subsidiary, Centurion China Investments Pte Ltd (CCIPL), has entered into a cooperation framework agreement with Xiamen City Home Apartment Management Co. Ltd. (City Home) to create two joint venture companies (JVCos). The joint venture companies will retrofit, renovate and, or manage and operate build-to-rent (BTR) residential accommodation for working professionals in Xiamen, Fujian, China. CCIPL will hold 51% equity stake while City Home will hold a 49% equity stake in the JVCos.
Under the agreement, both parties will hone their strengths, prowess and resources with a view to further jointly establishing and investing in project companies for the purpose of the joint venture. As of Sept 9, 2024, the parties have identified two projects comprising approximately 1,500 apartments of BTR accommodation in the Huli District, Central Xiamen, Fujian, China.
The first project consists of five newly constructed blocks of residential development while the second project consists of a single block. The JV will enter into master leases with the respective property owners for a duration of 20 years. The first development will consist of 1,000 quality apartments with fresh graduates and working professionals in Xiamen city as the target group. The second development will be retrofitted into 500 apartments.
City Home is a limited liability company under the laws of China and is approved by the national government department to participate in accommodation services within the scope of its business. Ever Yan Qin and Gao Yi Zhi are City Home’s co-founders and the company has been operating since 2018 with 14,000 BTR apartments across three cities in Fujian for fresh graduates and working professionals.
The creation of the JVCos highlights Centurion’s first step into the BTR accommodation market in China. This framework agreement is part of Centurions’ ordinary course of business and aligns with the company’s strategy to develop its housing business worldwide, through asset light means.
As of Sept 9 2024, CCIPL has not entered into any definitive agreements with City Home and it is not certain that any definitive agreements or transactions will be entered into.
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As at 3.15pm, shares in Centurion are trading 1.5 cents lower or 2.13% down at 69 cents.
