Centurion surges 6.3% after news that it is exploring a Reit listing 

SHARES of accommodation-asset operator Centurion surged 6.3 per cent on Wednesday (Jan 8) following the previous day’s news that it is exploring a real estate investment trust (Reit) listing on the Singapore Exchange (SGX).

At 9.39 am, the counter had advanced 6.3 per cent or S$0.06 to S$1.02 from Tuesday’s closing price of S$0.96, hitting a high in more than a decade. The share price had soared to a high of S$1.19 in 2007.

No married deals were recorded based on ShareInvestor data. 

This follows the company’s announcement on Tuesday that it is exploring the establishment of a Reit, comprising some of its workers and student-accommodation assets.

If established, the Reit will be listed on the SGX’s mainboard, subject to approval from the bourse and the Monetary Authority of Singapore, the group said. 

Centurion chief executive officer Kong Chee Min said that the group is also considering a dividend-in-specie for some units in the proposed Reit.

The company also said that it is working with DBS and the Singapore branch of UBS to explore the proposal. It is considering details such as the terms and timing of the listing.

However, it advised shareholders that the proposed Reit listing is not guaranteed to take place or to occur in the form as described, as it will be subject to market conditions, commercial negotiations, and “relevant regulatory, shareholders’ and other approvals”.

Centurion in January 2015 announced plans to explore setting up a Reit. It had planned to inject some of its worker accommodation assets into the trust. However, it said in March of the same year that it would defer and reconsider the proposal at a later date.

Shares of Centurion closed on Wednesday at S$0.995, up S$0.035 or 3.6 per cent.