Centurion allows early lease termination for UK students, expects up to £5m revenue loss

HOUSING operator Centurion Corp on Monday said it will allow those residing at its UK student accommodation the option to terminate their remaining lease early for the current academic year. 

The move comes as the UK government has put in place a nationwide lockdown to contain the spread of the novel coronavirus.

As a result, Centurion expects lower occupancies at its UK properties for the remainder of the UK academic year 2019-2020 from May 1 till the end of August this year. The group anticipates a reduction in revenue of between £3 million (S$5.3 million) and £5 million for this period, depending on the number of residents taking up the offer, it said. 

Due to the pandemic, universities have moved their academic programmes and curriculum online, and students can choose to return home and continue their programmes from there, mainboard-listed Centurion noted. 

Students who choose to return home for the final semester of the UK academic year 2019-2020 may terminate their tenancies early and will not have to pay rent from May 1, 2020. Those who have paid in advance and choose to terminate their remaining leases will receive a refund for the lease period beginning May 1, till the end of the contracted lease term, Centurion said. 

To exercise the option for early lease termination, students will only need to submit a request to do so by April 26. 

A NEWSLETTER FOR YOU

Tuesday, 12 pm

Property Insights

Get an exclusive analysis of real estate and property news in Singapore and beyond.

Sign Up

Centurion's move comes after due assessment of the universities' actions, conditions faced by student-residents, and consideration of both short and long-term interests of its multiple stakeholders, the company said. The group's properties remain operational in order to support these residents choosing to stay put.

Within Singapore, Centurion said that while there have been confirmed cases of Covid-19 infection in some of the group's Purpose Built Worker Accommodation (PBWA), there has so far not been an impact on the number of beds leased out or the financial occupancy of the group's PBWA portfolio here. 

In Malaysia, with the government's Movement Control Orders in place, Centurion's PBWA operations remain stable, and no impact is expected on the financial occupancy of its Malaysia PBWA portfolio, the company added.

Centurion shares closed flat at S$0.39 on Monday before the announcement was made.