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Centurion exploring a Reit listing for worker dormitories

Friday, January 16, 2015 - 18:06

Centurion Corporation said it is currently exploring the feasibility of spinning off a real estate investment trust (Reit) to list on the Singapore Exchange and injecting some of its workers accommodation assets into the Reit.

This will allow the group to recycle capital to pursue its growth strategies across its growing accommodation business, it explained.

Having a Reit to hold the stabilised assets could expand the group's role from developing greenfield projects to managing assets.

Centurion chief executive officer Kong Chee Min said: "We are exploring the feasibility of injecting certain workers accommodation assets into a Reit to unlock value for shareholders as well as to free up capital for strategic acquisition opportunities."

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The group is working with Barclays, United Overseas Bank and UOB Kay Hian to explore this proposed transaction.

Details of the transaction are subject to prevailing market conditions and regulatory approval, it said.

Trading of shares in Centurion was halted ahead of the announcement.

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