Centurion Accommodation REIT (CA-REIT) IPO: 27k Beds, 7.5–8.1% Yield, Low-20% Gearing
TL;DR: Income-focused REIT with high occupancies (~97%), attractive forecast yields (7.47% in FY2026; 8.11% in FY2027), conservative leverage (~20.9% at IPO), and strong cornerstone demand. Debut likely steady to mildly positive versus offer price.
Quick Facts
Offer Size
262,160,900 units
Forecast Yield
7.47% (FY26) / 8.11% (FY27)
Units outstanding post-offer: ~1,719,331,000 • Over-allotment option: 51,137,000 units (19.5% of offer)
The Story in One Minute
Centurion Accommodation REIT holds a diversified accommodation portfolio spanning Singapore purpose-built worker accommodation (PBWA) and UK/Australia purpose-built student accommodation (PBSA). With ~26,870 beds across 14 assets and ~97% occupancy, the REIT lists with conservative gearing and a strong cornerstone line-up—positioning it as a yield play with room to grow.
1) Use of Funds & Dividend Policy
- Growth-driven listing: Proceeds fund the acquisition of the Initial Portfolio, transaction costs, and working capital—this is not a debt-reduction exercise.
- Distribution cadence: Quarterly (Mar/Jun/Sep/Dec) with forecast yields of 7.47% (FY2026) and 8.11% (FY2027) at the S$0.88 offer price.
- Balance sheet headroom: ~20.9% leverage at IPO leaves ample capacity for future acquisitions.
2) Sizing & Day-1 Dynamics
| Component |
Details |
| Offer Price |
S$0.88 per unit |
| Total Offer |
262,160,900 units |
| Placement Tranche |
248,960,900 units (~S$219.1m) |
| Public Offer |
13,200,000 units (~S$11.6m) |
| Gross Proceeds (Offer) |
~S$230.7m |
| Units Outstanding (Post-Offer) |
~1,719,331,000 |
| Free Float from Offer |
~15.2% (up to ~18.2% if over-allotment fully used) |
| Day-1 Read |
Cornerstone weight + stabilisation suggest a steady to mildly positive debut rather than a large “pop”. |
3) Cornerstones, Demand & Lock-ups
Cornerstone investors (selected): BlackRock, FIL Investment Management (Hong Kong) Ltd (approx. 153.41m units, ~8.9% post-IPO), Eastspring, Lion Global Investors, Principal GI (Singapore), UBS (Singapore Branch, own book), Value Partners, DWS Investments Australia, Ong Pang Aik, DBS Bank Ltd (own book).
- Aggregate cornerstone size: ~614.0m units at offer price.
- Lock-ups: Sponsor and related parties: 6 months + next 6 months (50%). Cornerstones generally without lock-up (DBS own-book portion locked 6 months).
- Subscription multiples: Not announced at preliminary stage.
4) Deal Team & Support
Joint Issue Managers & Global Coordinators: DBS Bank Ltd; UBS AG, Singapore Branch
Joint Bookrunners & Underwriters: DBS; UBS (Singapore Branch); United Overseas Bank; UOB Kay Hian; Maybank Securities
Co-Managers: CGS International Securities; Hong Leong Finance
Stabilising Manager: UBS AG, Singapore Branch (over-allotment option 19.5% of offer)
Sponsor: Centurion Corporation Limited
Debut take: Full underwriting and a sizeable stabilisation facility typically support orderly price action on day one.
5) What the Business Looks Like
Business Model & Footprint
- Assets: 14 properties (5 PBWA in Singapore; 8 PBSA in UK; 1 PBSA in Australia)
- Beds: ~26,870 (PBWA ~21,282; PBSA ~2,772)
- Occupancy: ~96.9% (PBWA) / ~96.8% (PBSA)
- Appraised Value: ~S$1.84b
Financial Health (Pro Forma)
- Revenue/NPI Growth: Initial portfolio CAGR FY2022–FY2024 of ~23.7% (revenue) and ~29.2% (NPI)
- Leverage: ~20.9% at IPO; ~31.0% post Epiisod Macquarie Park acquisition
- ICR: ~4.6x (FY2026) and ~4.8x (FY2027)
- NAV/Unit: ~S$0.837 (implies ~1.05x P/B at S$0.88)
Market Position
PBWA anchored by long-standing construction and allied-sector tenants; PBSA located near target universities in UK cities (e.g., Manchester, Liverpool, Bristol, Nottingham) and in Sydney/Adelaide—supporting persistently high occupancy.
Management Team
Manager: Centurion Asset Management Pte. Ltd.
CEO: Tony Bin Hee Din • CFO: Teo Chee Kiat • CIO: Ang Cher Hoong (Ginny)
Board (Manager): Loh Kim Kang David (Chairman), Tan Kok Kwee (Lead INED), Choy Bing Choong (INED), Cheam Heng Haw (INED), Wong Kok Hoe (NINED)
6) Context: Trends, Timing & Risks
a) Sector & Demand
- PBWA (SG): Structural demand from construction and allied sectors; robust bed take-up.
- PBSA (UK/AU): Persistent bed shortages in key university cities sustain high occupancy and pricing power.
b) Timing
Forecast yields of ~7.5–8.1% at listing with low initial leverage provide both income and acquisition headroom—well-timed for investors prioritising yield and balance-sheet resilience.
c) Macro & Financing
- REIT leverage cap at 50%; IPO gearing ~20.9% offers significant buffer.
- No near-term debt cliffs disclosed; multi-currency facilities in place.
d) Newsflow
Preliminary prospectus lodged 11 Sep 2025; pricing, subscription stats, and allotment results will follow the bookbuild.
e) Overall Market Conditions
High occupancies, cornerstone weight, and stabilisation feature point to supportive debut conditions.
f) Key Risks
- Policy and cycle exposure in Singapore construction-linked PBWA.
- Revenue concentration: PBWA is the larger NPI driver; construction accounts for a significant share of PBWA rents.
- FX/interest-rate sensitivity (SGD/GBP/AUD).
- Cornerstone unlocks (most not locked) can add supply after listing.
g) Growth Strategy
Organic yield optimisation, asset enhancement, and acquisition pipeline (including forward purchase of Epiisod Macquarie Park) to scale the platform; leverage expected to remain moderate post-deployment (~31%).
h) Ownership & Lock-ins
Sponsor ~45.8% post-offer; cornerstone investors ~35.7%; offer free float ~15.2% (higher if over-allotment exercised). Sponsor and related parties: 6-month lock-up + next 6 months (50% of units). DBS own-book cornerstone: 6-month lock-up.
7) Snapshot Metrics (Mobile-Friendly Table)
| Metric |
CA-REIT (at IPO) |
| Offer Price |
S$0.88 |
| P/B (vs NAV/Unit ~S$0.837) |
~1.05× |
| Forecast Distribution Yield |
7.47% (FY2026) / 8.11% (FY2027) |
| Aggregate Leverage |
~20.9% at IPO; ~31.0% post Epiisod |
| ICR |
~4.6× (FY2026) / ~4.8× (FY2027) |
| Portfolio Beds |
~26,870 (PBWA ~21,282; PBSA ~2,772) |
| Occupancy |
~96.9% (PBWA) / ~96.8% (PBSA) |
| Over-allotment Option |
51,137,000 units (19.5% of offer) |
Peer and concurrent-IPO comparisons can be added on listing/pricing day when live market data is available.
8) Research & Opinions
At preliminary stage, formal sell-side initiations and price targets are typically released closer to listing or after trading commences. None publicly available at time of writing.
10) Investment Take & Day-1 Range
Verdict: Worth Considering for income investors seeking a high single-digit yield with conservative initial leverage and visible demand drivers.
- Positives: 7.5–8.1% forecast yield, ~97% occupancy, low-20% gearing at IPO, robust cornerstone demand, and stabilisation support.
- Watch-items: Construction-cycle exposure (PBWA), FX/interest-rate sensitivity, and potential supply from un-locked cornerstones post-listing.
Estimated debut range: S$0.89 – S$0.94 (flat to ~+7% vs S$0.88), bias to trade mildly above offer on steady orderbook and stabilisation.
11) Prospectus
Preliminary prospectus lodged on 11 Sep 2025. To access, click here
