Centurion enters new key worker segment with S$41.1 million Australian buy
It provides stay options for essential workers
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[SINGAPORE] Living accommodation provider Centurion on Monday (Apr 20) said it has entered the specialised “key worker accommodation” segment with the buy of an operational property in Western Australia for about S$41.1 million.
The region accounts for about two-thirds of national mining production and produces more than 90 per cent of the country’s iron ore, supporting 13,000 jobs.
Most of the workforce is “fly-in, fly-out”, spending a few weeks near the job site before returning home, and requires accommodation, said Centurion.
As an existing operating asset with established facilities and amenities, the property is also expected to be earnings accretive. Had the purchase been completed on Jan 1, 2025, earnings per share would have climbed from S$0.1365 to S$0.1434, added Centurion.
The asset comprises Velocity Village, a 93-room worker accommodation facility with 186 beds and Velocity Motel & Bistro, which offers 135 executive-style single-occupancy rooms and associated amenities.
Velocity Village serves the operational workforce in the resources sector, while the Motel & Bistro caters to the industry’s professional and managerial staff. The property primarily serves corporate clients, with stays booked and managed by employers.
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The Western Australia acquisition, in Karratha, marks Centurion’s entry into the specialised key worker accommodation (KWA) segment. The group has operated businesses in purpose-built worker accommodation and purpose-built student accommodation since 2011 and 2014, respectively.
Following the spin-off and listing of Centurion Accommodation Reit, the group added that it is “well-positioned to deploy capital strategically into new growth areas” and is “actively exploring further opportunities in the KWA segment across Australia and in other markets”.
Shares of Centurion rose 0.6 per cent to close S$0.01 higher at S$1.68 on Friday.
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