Centurion Accommodation REIT Launches Blockbuster S\$771.1 Million IPO: High Yields, Strategic Growth, and Global Ambitions Set to Reshape Singapore’s REIT Landscape

Key Highlights for Investors: Singapore’s First Pure-Play Living Accommodation REIT Debuts

Centurion Accommodation REIT (“CAREIT”) has officially launched its highly anticipated initial public offering (IPO), seeking to raise over S\$771.1 million at S\$0.88 per Unit. CAREIT is set to become Singapore’s first pure-play real estate investment trust focused on purpose-built living accommodation, giving investors a unique gateway to a diversified portfolio of worker and student housing assets across Singapore, the UK, and Australia. This landmark IPO has already attracted strong cornerstone support from major global and regional real estate and institutional investors, with cornerstone commitments totaling S\$540.4 million.

• IPO Size: S\$771.1 million (assuming no over-allotment option exercised)
• Offering Price: S\$0.88 per Unit
• Public Offer Open: 18 September 2025, 10:00 p.m.
• Public Offer Close: 23 September 2025, 12:00 noon
• Trading Debut: 25 September 2025, 2:00 p.m. on SGX-ST Main Board
• Projected Distribution Yields: 7.47% (2026) and 8.11% (2027)
• Initial Portfolio Value: S\$1.8 billion (14 assets)
• Enlarged Portfolio Value: S\$2.12 billion (15 assets, post-acquisition of EPIISOD Macquarie Park, Australia)
• Cornerstone Investors: FIL Investment Management (HK), abrdn Asia, Amova Asset Management, Barings, Cohen & Steers, DBS, DWS, Eastspring, Lion Global, Principal Global, UBS, Value Partners, and others
• Sponsor Support: Centurion Corporation Limited will hold 42.8%–45.8% post-IPO, with a planned dividend-in-specie to its own shareholders in 2026

Strategic Details and Growth Drivers

Global, Diversified Portfolio with Resilient Demand

CAREIT’s initial portfolio consists of 14 assets: five purpose-built workers accommodation (PBWA) properties in Singapore, eight purpose-built student accommodation (PBSA) properties in the UK, and one PBSA asset in Australia. Following the completion of a forward purchase agreement for EPIISOD Macquarie Park in Sydney, the enlarged portfolio will comprise 15 properties valued at approximately S\$2.12 billion.

The assets enjoy strong fundamentals, with 86.3% of the portfolio on freehold or long (>30 years) leasehold land. Singapore’s PBWA sector benefits from robust demand for foreign labor amid controlled supply, while the UK and Australian PBSA sectors offer high occupancy and rental growth due to university demand and a severe shortage of quality student housing.

Operational Excellence and Brand Strength

CAREIT’s assets are managed under the established “Westlite” (PBWA) and “Dwell”/“EPIISOD” (PBSA) brands. The PBWA segment achieved an average 97.9% occupancy (FY2022–FY2024), and the PBSA segment recorded 94.1% (FY2022–FY2024). Rental reversions have been impressive, with PBWA assets posting a 26.3% CAGR and PBSA assets an 11.3% CAGR over the same period.

Visible Growth Pipeline and Capital Management

CAREIT is positioned for both organic and inorganic growth:

• Asset Enhancement Initiatives: Westlite Toh Guan (Singapore) is expanding with a new 1,764-bed block, expected by October 2025.
• Acquisitions: The fully debt-funded acquisition of EPIISOD Macquarie Park adds a new PBSA asset in Sydney. The master lease with Centurion Properties guarantees stable income until end-2027.
• Right of First Refusal: CAREIT benefits from its sponsor’s strong pipeline, with future potential in build-to-rent, co-living, and other long-stay accommodation assets.

Post-acquisition, projected leverage is a conservative 31.0%, with S\$558.8 million in debt headroom before reaching the 45% regulatory cap.

Shareholder-Sensitive and Price-Moving Factors

• High Projected Yields: At 7.47% (2026) and 8.11% (2027), CAREIT’s yields are among the most attractive in Singapore’s REIT sector. This could drive strong demand and boost share price post-listing.
• Cornerstone and Sponsor Alignment: The participation of blue-chip institutional investors and Centurion’s significant retained stake (with an intended 35%–40% holding post-dividend-in-specie) signal strong confidence and long-term alignment.
• Dividend in Specie (2026): Centurion Corporation plans to distribute some of its CAREIT units to its own shareholders, potentially increasing CAREIT’s public float and liquidity—a price-sensitive event for both entities.
• Growth Visibility: The clear pipeline of asset enhancements and acquisitions, along with the strong financial performance (revenue CAGR 23.7%, NPI CAGR 29.2% over FY2022–FY2024), provides a compelling growth narrative.
• Flexible Investment Mandate: CAREIT’s ability to pursue new living accommodation sectors (build-to-rent, co-living, etc.) could lead to accretive deals and future re-rating.
• Leverage and Debt Headroom: Conservative gearing and significant debt headroom provide financial flexibility and downside protection.
• Market Scarcity: Recent transactions show high investor interest for living accommodation platforms, underscoring the scarcity value and potential for premium valuation.

What Investors Must Know

• IPO Timeline: Subscribe between 18–23 September 2025. Trading starts 25 September 2025.
• Risks: As with all REITs, distributions depend on property market conditions, occupancy, and rental rates. There is no guarantee of yield, and unit prices may fluctuate.
• Regulatory Notice: Units are not guaranteed by the manager, trustee, sponsor, or bookrunners, and are subject to investment risks, including principal loss.
• Liquidity: Investors can only trade via SGX-ST; there is no redemption or repurchase by the REIT.
• Forward-Looking Statements: Projections are based on assumptions and subject to risks; actual results may differ materially.

Conclusion

The launch of Centurion Accommodation REIT’s IPO is a landmark event for Singapore’s REIT market, offering high yields, robust growth drivers, and unique exposure to the booming living accommodation sector. With strong institutional support, a disciplined capital strategy, and visible avenues for expansion, CAREIT is well-positioned to attract significant investor interest and could see substantial share price movement upon listing. Prospective investors should carefully review the full prospectus and consider both the opportunities and risks before participating in the IPO.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or an offer to subscribe for or purchase any securities. Please refer to the official prospectus and consult your financial advisor before making any investment decision. Projected yields and forward-looking statements are based on current assumptions and are subject to risks and uncertainties.

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