A JOINT venture of dormitory operator Centurion Corporation has leased 50 residential flats in a property in Hong Kong from Abercorn Investments, and plans to renovate these units into accommodation for workers.
The flats, to offer a total of 550 beds, are expected to be ready for occupation in October.
The property is in the centre of Sheung Shui, a mature neighbourhood, and within walking distance of the Sheung Shui MTR (Mass Transit Railway) station, said Centurion in a bourse filing on Thursday (Jul 4).
Centurion owns 60 per cent of the joint venture through Centurion Overseas Investments; the remaining 40 per cent is owned by its joint-venture partner, LionRock Property.
The property will be operated under Centurion’s Westlite workers’ accommodation brand and management platform.
The master lease commenced on Jul 3 and expires on May 31, 2030. There is an option to renew it for another five years upon the expiration of the initial term.
A NEWSLETTER FOR YOU
Tuesday, 12 pm
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
Centurion said the entry into this master-lease agreement is in the ordinary course of business of its joint venture, which leases, refurbishes and manages housing assets in Hong Kong for students and workers.
It added that the agreement is consistent with the group’s strategy of growing its accommodation business globally, and by being asset-light.
In May, Centurion’s joint venture leased 15 floors of a building in Hong Kong from Golden Well Development; it plans to use the space for student housing.
The latest transaction is not expected to have a material impact on the company’s consolidated net tangible assets or earnings per share for the financial year ending Dec 31.
Shares of Centurion closed flat at S$0.585 on Thursday, before the announcement.
