The building will be refurbished and developed into student accommodations with a total capacity of 66 beds. The five-year term agreement also has options to renew for three years and a further two years.
The property will be operated under Centurion’s “dwell” student living brand and management platform, subject to a licence agreement to be entered into between COI and the JV company.
The projected cost of the proposed refurbishment of the property and initial working capital is approximately HK$11.5 million ($2.0 million) and will be funded by a shareholder loan at an annual interest of 8% from COI.
The building is expected to be completed and operational in September.
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The transactions are not expected to have any material impact on Centurion’s consolidated net tangible assets or earnings per share for the FY2024 ending Dec 31.
Shares in Centurion closed unchanged at 42.5 cents on April 9.
