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Centurion JV completes acquisition of Benikea Hotel in Seoul
MAINBOARD-LISTED Centurion Corporation on Wednesday morning said it has completed the acquisition of South Korea's Benikea Hotel for S$16.6 million. The company has said that the hotel will be refurbished as student accommodation.
The acquisition was made through a joint venture (JV), whereby Centurion Overseas Investments - a wholly owned subsidiary of the company - will own a direct 55 per cent interest in the property. Through the nomination by South Korea's KTM Distributions, Comanche Co will hold another 5 per cent, while the last 40 per cent will be held by Centurion Properties, which is in turn held by the controlling shareholders of Centurion Corporation, David Loh and Han Seng Juan.
The joint venture partners have set up a collective investment vehicle - IGIS Centurion No 238 Professional Investors Private Real Estate Investment - which has a book value of about 7.5 billion won (S$9.2 million) "to manage, acquire or lease, operate and manage assets providing accommodation to tourist, students and/or office professionals in Korea", it said in a filing with the Singapore Exchange.
The JV partners have also established CSL Student Living Benikea KP to manage the property’s operations and the proposed refurbishment. Its book value is 10 million won and will be proportionately owned by the JV partners.
With the acquisition of the hotel, Centurion has through its wholly owned subsidiary, Centurion Accommodation Management, established Dwell Student Living Korea in South Korea with an initial issued and paid-up beneficial units of 10 million won comprising 1,000 units at an issue price of 10,000 won per unit.
Dwell Student Living will provide management services to CSL Student Living in managing its day-to-day operations and as an outsourced management operator.
The property is located in the Dongdaemun district within Seoul, and will be converted from a 104-room three-star hotel into a 208-bed accommodation. The projected capital expenditure is about S$4.55 million.