Brokers' take

Centurion Corp

BUY

Maybank Kim Eng Research | March 20 |

March 20 close: S$0.54

Target price: S$0.70

The Business Times reported that Singapore-based property fund manager Pamfleet Group has closed a deal to buy Homestay Lodge for just over S$127 million from a privately-owned vehicle of Hotel Properties managing director Ong Beng Seng and his brother-in-law David Fu. The dorm in Kaki Bukit Avenue 3 has about 6,000 beds, and sits on two plots of land covering 200,000 sq ft. It has 14 years of lease left and is known to be fully occupied. This is the first sizeable purpose-built dorm sale reported here. We estimate internal rate of return at 7.86 per cent, below Centurion's 7.9 per cent and 8.57 per cent for Westlite Woodland and Westlite Jalan Papan. The two have leases of over 20 years. W…