Centurion Accommodation REIT, which was spun off from dormitory operator Centurion Corp, opened at 98 cents, 10 cents above its IPO price.
It closed at 96 cents, up 9.1% from the IPO price. More than 82 million units were traded.
This IPO, which raised $771.1 million, is priced at 88 cents each, which implies a projected distribution yield of 7.47% for 2026 and 8.11% for 2027.
The REIT has also secured 16 cornerstone investors, which have subscribed for an aggregate of 614 million, or 35.7% of the total.
They are: FIL Investment Management (Hong Kong), abrdn Asia, Amova Asset Management Asia, Asdew Acquisitions, B&I Capital, Barings Singapore, Cohen & Steers Asia, DBS Bank, DBS Bank on behalf of wealth management clients, DWS Investments Australia, Eastspring Investments (Singapore), Lion Global Investors, Principal Global Investors (Singapore), UBS on behalf of clients, Value Partners Hong Kong and Ong Pang Aik, chairman of previously listed Lian Beng Group.
With this REIT's listing, there are now 40 REITs on the SGX, with a combined market cap of around $100 billion.
See also: Centurion’s next Epiisod with Sydney in lead role
Centurion Accommodation REIT, which will also go by the name CAREIT, is described as Singapore’s first pure-play purpose-built living accommodation REIT with both worker and student dormitories across Singapore, the UK and Australia.
Its sponsor, Centurion Corporation, is a homegrown company listed on the Singapore Exchange (SGX) since 1995.
Its initial portfolio comprises 14 assets, with five purpose-built workers’ accommodation (PBWA) in Singapore, eight purpose-built student accommodation (PBSA) in the UK, and one PBSA in Australia. The IPO portoflio is valued at $1.8 billion in total.
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CAREIT's portfolio valuation will grow to $2.1 billion after it acquires a second Australia student housing asset, which has already been lined up. Epiisod Macquarie Park — touted as a more upscale, wellness-oriented student living experience — is currently under development.
Tony Bin, CEO of the manager, says: “We believe our REIT offers investors access to a high-quality portfolio of worker and student accommodation assets in three key markets, which benefit from favourable fundamentals and strong growth outlook.”
Bin adds: “With the strong support of our sponsor, we are well-positioned to pursue long-term growth and deliver value to our unitholders. We are grateful to everyone who has helped to make the listing a success, and we look forward to engaging with our partners and investors to achieve our future goals.”
Pol de Win, head of global sales and origination at SGX, says: “Centurion Accommodation REIT’s listing further expands the spectrum of real estate assets available in our stock market and broadens opportunities for investors.”
De Win adds: “It also marks an important milestone for Centurion Corporation as it unlocks value for its shareholders, and we are excited to continue to provide a platform for its growth.”
DBS group CEO Tan Su Shan attended the listing ceremony on Sept 25.
Art Karoonyavanich, global head of equity capital markets at DBS, says: “The high take up by institutional and retail investors for this IPO signals a return of optimism to Singapore’s equity market. It also suggests that recent measures to rejuvenate the stock market are starting to bear fruit.”
Karoonyavanich expects this momentum to continue well into 2026, “especially amidst a more accommodative interest rate environment where issuers will find it conducive to raise capital”. “As the leading investment bank in Singapore, DBS will continue to help develop Singapore’s equity market by attracting quality listings and strategic investors to the financial hub.”
