Bright spots for Centurion's worker and student accommodations

THE Covid-19 pandemic had battered several real estate asset classes but Centurion Corp, which operates purpose-built worker and student accommodation (PBWA and PBSA respectively), is anticipating a pick-up in demand for student housing and more opportunities to enlarge its worker accommodation portfolio.

PBSAs, which are typically prized for defensive plays, had been hurt by travel bans and the shift towards online learning. Still, it remains an attractive asset class given the sustained interest in reputable educational institutions abroad and the appeal of communal living among students, Centurion's chief executive officer Kong Chee Min told The Business Times in an interview.

Despite the economic slowdown, global players have remained invested in PBSA, which is evident as yield compression continues, said Mr Kong. PBSAs are in a better position than some other real estate asset classes such as offices and hotels, which are facing longer-term pandemic woes, according to Mr Kong.