Singapore’s Centurion Launches REIT IPO to Raise Over $600M

The manager of Centurion Accommodation REIT on Thursday filed its final prospectus with the Singapore Exchange for an initial public offering set to raise S$771.1 million ($602.8 million).

The IPO period opens at 10pm on the same day with the offering priced at S$0.88 per unit and closes at noon on 23 September, with SGX trading to begin at 2pm on 25 September, sponsor Centurion Corp said in a release. The trust has secured commitments totalling S$540.4 million from cornerstone investors, the developer said.

The seed portfolio of CAREIT will comprise five purpose-built worker accommodation assets in Singapore, eight purpose-built student accommodation assets in Britain and one PBSA asset in Australia. The properties provide 21,282 PBWA beds and 2,772 PBSA beds.

“The strong support from cornerstone and institutional investors reflects confidence in our high-quality, diversified portfolio,” said Tony Bin, CEO of the manager. “Our geographically and sector-diversified assets position us well to capture resilient demand and benefit from favourable fundamentals in the PBWA sector in Singapore and robust growth in the PBSA sectors in UK and Australia, where both markets are characterised by strong demand for higher education and tight supply.”

$1.6B Portfolio

CAREIT’s seed portfolio comprises 14 of Centurion’s purpose-built projects with an agreed value totalling S$1.8 billion. Key assets include the 7,330-bed Westlite Toh Guan and 6,290-bed Westlite Mandai worker dorms in Singapore, the 982-bed Dwell Manchester Student Village and 362-bed Dwell Manchester Student Village South in England, and the 300-bed Dwell East End Adelaide in the South Australia capital.

The trust also plans to buy a second Australia student housing asset, the under-development Epiisod Macquarie Park in western Sydney, after completion of the listing. The 732-bed project will enlarge the portfolio to 15 assets with an agreed value of S$2.1 billion ($1.6 billion).

Some 86.3 percent of assets in the enlarged portfolio have land titles of either freehold or leasehold of more than 30 years by agreed property value, Centurion said. At the offering price, the enlarged portfolio provides distribution yields at a projected 7.47 percent for 2026 and 8.11 percent for 2027.

Gross revenues at CAREIT’s properties grew at a compound annual rate of 23.7 percent from 2022 to 2024 as net property income rose at a 29.2 percent rate over the same period, according to the prospectus. Occupancy rates quickly recovered to surpass pre-COVID levels and short tenancies have supported consistent rental growth in an inflationary environment, Centurion said.

Backed by Fidelity, Aberdeen

CAREIT’s 16 cornerstone investors include Fidelity International Hong Kong, Scotland’s Aberdeen Investments, Amova Asset Management and Barings. The cornerstone investors have subscribed for units representing 35.7 percent of the total number in issue, while Centurion will hold 45.8 percent if an over-allotment option is unexercised or 42.8 percent if the option is exercised in full.

Centurion plans to distribute some of its sponsor units to Centurion shareholders via a dividend in specie in 2026, after which it intends to hold between 35 and 40 percent of the total number of units in issue.

David Loh, chairman of the manager and joint chairman of Centurion Corp, hailed the launch of CAREIT as a strategic extension of the group’s long-standing expertise in the purpose-built accommodation sector. Centurion has more than S$2.6 billion in assets under management and runs 37 operational accommodation assets totalling 70,291 beds across six countries.

“CCL is pleased to bring to market a quality portfolio which has resonated well with institutional investors, and we are optimistic that the REIT will be as well-received by retail investors in Singapore,” Loh said.

The IPO is expected to be Singapore’s second largest this year after NTT DC REIT raised $773 million in its July debut.