Centurion JV leases 15 floors of Hong Kong building for student accommodation business
The agreement has a term of five years, with options to extend to a maximum of nine years
A JOINT venture of Centurion Corporation has leased 15 floors of a building in Hong Kong from Golden Well Development, with the intention of using the space for student accommodation, the dormitory operator said on Thursday (May 16).
The property is expected to be operational in September this year, with a total capacity of 89 beds to house students. It is located in Kowloon, Hong Kong, within walking distance of Hong Kong Polytechnic University and Hong Kong Metropolitan University, said Centurion in a bourse filing.
The master lease agreement commenced on Thursday for a term of five years, with an option to renew for one two-year term and, subject to further agreement, two one-year terms. This means the maximum length of the lease is nine years.
Centurion owns 60 per cent of the joint venture that signed the master lease agreement, while the remaining 40 per cent is owned by independent third party LionRock Property.
Centurion said the entry into the agreement is in consistent with the group’s strategy to grow its accommodation business globally, via asset-light means.
The deal is not expected to have any material impact on the company’s consolidated tangible assets or earnings per share for the financial year ending Dec 31, 2024.
Centurion shares fell 1.8 per cent or S$0.01 to close at S$0.54, before the announcement.
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