Centurion Accommodation REIT will offer 262.16 million units for subscription under its initial public offering (IPO), according to its prospectus released on Sept 11. Each unit is priced at 88 cents.
The news comes after shareholders of Centurion Corporation, the REIT’s sponsor, voted overwhelmingly in favour of the REIT spin-off at an extraordinary general meeting (EGM) on Sept 10.
The company first announced that it would be exploring a spin-off listing on Jan 7.
The offering comprises an international placement tranche of 248.96 million units and a public offering of 13.2 million units.
The REIT’s 16 cornerstone investors, FIL Investment Management (Hong Kong) Limited, abrdn Asia Limited, Amova Asset Management Asia Limited, Asdew Acquisitions Pte Ltd, B&I Capital Pte. Ltd., Barings Singapore Pte. Ltd., Cohen & Steers Asia Limited, DBS Bank Limited, DBS (on behalf of “certain wealth management clients”), DWS Investments Australia Limited, Eastspring Investments (Singapore) Limited, Lion Global Investors Limited, Lian Beng Group's chairman Ong Pang Aik, Principal Global Investors (Singapore) Limited, UBS AG (acting on behalf of certain of its wealth management customers) and Value Partners Hong Kong Limited, have entered into separate cornerstone subscription agreements to subscribe for a total of 614.0 million units at the offering price.
Centurion Capital Investments has also entered into a subscription agreement with the REIT manager to subscribe for 414.37 million units.
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In the prospectus, the REIT has projected distribution per unit (DPU) yields of 7.47% and 8.11% for 2026 and 2027, respectively, based on the offering price and on the enlarged portfolio of 15 assets. The REIT’s IPO portfolio will include 14 assets comprising five purpose-built worker accommodation (PBWA) assets in Singapore, eight purpose-built student accommodation (PBSA) assets in the UK and one PBSA asset in Australia. The REIT's acquisition of Epiisod Macquarie Park, located in Sydney, will only take place after the REIT's listing date. Epiisod Macquarie Park will be move-in ready in February 2026.
The REIT will have a leverage ratio of about 20.9% at its IPO. It’ll be about 31% post fully debt funded acquisition of Epiisod Macquarie Park.
Shares in Centurion last traded at $1.76.
