Centurion halts sale process for US assets citing uncertain market conditions

CENTURION Corporation : OU8 0% on Friday (Nov 11) said the sale process of its US portfolio assets has been halted due to uncertain market conditions and interest rate environment.

The Centurion US Student Housing Fund, which Centurion Corp owns a 28.7 per cent stake in, started the sale process of its US assets in April. The fund’s trustee and manager are both wholly-owned subsidiaries of the company. The move follows a strategic review of Centurion Corp’s accommodation portfolio as part of continuing efforts to rationalise its portfolio of assets.

Centurion said the portfolio of assets held by the fund has high occupancy and healthy rental reversions for the 2022/23 academic year. It expects continued strong market demand for the 2023/24 academic year.

The fund on Thursday obtained approval from its investors for an extension of the term by two years to expire instead on Nov 19, 2024. Centurion Corp previously disclosed it would seek approval for an extension in case the proposed sale did not close by the end of 2022.

Shares of mainboard-listed Centurion Corp were flat at S$0.34 as at the Friday midday trading break.