Centurion to acquire Yan Woo building in Hong Kong for US$46.4 million

[SINGAPORE] Centurion Corporation has entered into a sale and purchase agreement to acquire Yan Woo Building in North Point, Hong Kong, for HK$364 million (US$46.4 million), it announced through a bourse filing on Friday (Sep 25).

The acquisition of the 26-storey commercial and residential property will be made through a 50:50 joint venture with its controlling shareholder, Centurion Properties.

The property was acquired from an independent third party, Chase Harvest Development.

Completed in 2000, Yan Woo Building comprises 42 apartment units and nine commercial units.

Situated at the junction of Java Road and Tong Shui Road, the site occupies approximately 3,426 square feet (sq ft) and yields a total gross floor area of roughly 34,286 sq ft.

Out of this, approximately 26,070 sq ft is dedicated to domestic residential accommodation, while the remaining 8,216 sq ft serves as non-domestic commercial space.

The site is held under a government lease of 75 years from Sep 5, 1921, renewable for a further 75 years.

Centurion said that following the acquisition, it plans to carry out progressive addition and alteration works on the apartment units, and rent out the units as “quality rental accommodation”.

The property’s commercial space, which spans the ground to second floors, is expected to contribute rental income upon completion of the acquisition. The nine units are currently tenanted by a mix of operators, including food and beverage outlets, a pharmacy, telecommunications, veterinary services and a convenience store.

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Centurion’s chief executive officer, Kong Chee Min, noted that the company has taken a “measured approach” to its expansion in Hong Kong.

“The entry price is attractive relative to the underlying value of the asset, and the property gives us a base of recurring income while we carry out enhancement works on the residential floors,” he said. “We will continue to evaluate opportunities in the city on their individual merits.”

The acquisition is scheduled for completion on Nov 28, 2026, and will be funded through a combination of internal resources and external financing.

The proposed acquisition is not expected to have any material impact on the consolidated net tangible assets per share or earnings per share of the company for the financial year ending Dec 31, 2026.

Shares of Centurion ended flat at S$1.48 on Friday, before the announcement.