Residents Object to More Student Flats
24th Apr 2018
Centurion Corp, which develops and runs student accommodation, has revealed plans to expand into the United States.
The company plans to buy a portfolio of 1,936 beds across five student accommodation assets in four US States. The portfolio is expected to cost around USD 136 million, with Centurion owning a 30% stake and third-party investors owning the remaining portion.
Under the plans, Centurion will also set up an investment management platform to manage the portfolio of assets on behalf of investors.
Those properties in contention are in Auburn, Alabama; Tallahassee, Florida; Madison, Wisconsin, and College Station, Texas. The acquisition is expected to be finalised by the end of September.
Once the sale is completed, the five fully operational assets, will be earnings accretive, or add to the group's earnings from the fourth quarter of 2017.
To manage the student accommodation, Centurion will enter a joint venture with an accommodation manager to co-manage the assets with its own brand called Dwell Student Living.
Once the additional 1,936 beds from the US are added, Centurion will manage a total of 5,424 beds across 16 student accommodation assets in the US, UK, Australia and Singapore. Those properties it currently manages in the UK are located in Bristol, Liverpool, Manchester and Newcastle.
Commenting on the move into the States, chief executive Kong Chee Min, said: "The US is one of the key and established educational hubs in the world...and the proposed acquisition will immediately expand our business geographically and increase the earnings contribution from this resilient sector.
"It will also open a new business opportunity for Centurion, as we extend into the investment management of investments from like-minded investors."
24th Apr 2018
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