Centurion Accommodation Reit’s debut marks first pure-play portfolio of purpose-built worker and student housing assets
[SINGAPORE] Centurion Accommodation Reit’s listing on Thursday (Sep 25) marked the first pure-play purpose-built worker and student accommodation Reit, providing access to two resilient segments within the living accommodation space across three markets globally.
At an initial market capitalisation of S$1.51 billion and funds raised of S$771.1 million, the Reit is the second-largest offering this year.
The Reit is sponsored by Centurion Corporation Limited (CCL), a Singapore-based company specialising in purpose-built worker and student accommodation. CCL is the largest purpose-built worker accommodation (PBWA) operator in Singapore, managing a S$2.6 billion portfolio across six countries with 37 assets and over 70,000 beds.
The Reit’s initial portfolio comprises 14 assets, with five PBWA assets located in Singapore, eight purpose-built student accommodation (PBSA) assets located in the United Kingdom, and one PBSA asset located in Australia, with a combined value of about S$1.84 billion.
Following its listing, the Reit plans to expand by acquiring Epiisod Macquarie Park, a PBSA asset in Australia, subject to the fulfilment of certain conditions. Upon completion, the portfolio will comprise 15 assets with an estimated total value of over S$2.1 billion.
According to its prospectus, the Reit highlights that Singapore’s PBWA segment is poised to benefit from sustained demand for foreign labour, alongside a controlled supply of housing. In parallel, the PBSA markets in the UK and Australia continue to show robust growth, supported by strong demand for higher education and limited availability of suitable student housing. Its properties are managed under the Westlite brand for PBWA, and under Dwell and Epiisod for PBSA.
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The Reit’s initial portfolio has a gearing ratio of 20.9 per cent, which is projected to increase to 31 per cent following the planned acquisition. The expected interest coverage ratio is 4.6 times and 4.8 times for FY2026 and FY2027, respectively. Average occupancy rates from FY2022 to FY2024 are 97.9 per cent for PBWA and 94.1 per cent for PBSA. Rental rates have shown positive growth, with a compound annual growth rate of 26.3 per cent for PBWA and 11.3 per cent for PBSA over the same period.
Based on the offer price of S$0.88 per unit, the Reit is expected to deliver an annualised distribution yield of 7.47 per cent for FY2026 and 8.11 per cent for FY2027.
Other S-Reits with exposure to the PBSA sector include CDL Hospitality Trusts , which acquired its first PBSA asset in December 2024. This property, located in Liverpool, United Kingdom, is valued at S$67.1 million and reported an average occupancy rate of 95 per cent for the first half of 2025.
CapitaLand Ascott Trust also has a notable presence in the PBSA sector, with nine assets located in the United States and Japan. Student accommodation assets account for 11 per cent of the trust’s portfolio value.
Elite UK Reit recently received approval to convert a property in Dundee, Scotland, into a 168-bed PBSA asset. The property is located centrally and is intended to address demand for student accommodation in the area. Completion is projected for 2027, with an estimated return on investment of 18 per cent.
A recent Knight Frank report highlights a growing investor interest in living sectors, particularly PBSA and PBWA. Scarcity factors have led to competitive bidding and helped to maintain robust pricing levels.
The writer is a research analyst at SGX. For more research and information on Singapore’s Reit sector, visit sgx.com/research-education/sectors for the S-Reits & Property Trusts Chartbook.
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