Centurion Corporation Makes Strategic London Acquisition: Major Expansion into UK Student Accommodation Market

Key Points for Investors

• Centurion Corporation Limited has completed the acquisition of a prime land site at William Road, Euston, London, through its wholly-owned subsidiary, Centurion Overseas Investments Pte. Ltd. (COI).
• The acquisition marks a significant strategic push to expand Centurion’s footprint in the UK student accommodation market, with plans to develop a 225-bed purpose-built student accommodation (PBSA).
• The purchase was completed via a joint venture with Landmark Properties, a major US-based real estate firm with UK operations.
• The total investment outlay, including VAT and transaction costs, amounts to approximately GBP 43.47 million (S\$75.23 million).
• COI now holds a 99% equity interest in the joint venture vehicle, with Landmark UK Bidco retaining 1% and certain option rights.
• The acquisition is funded entirely from internal resources and is not expected to materially impact Centurion’s net tangible assets or earnings per share for FY2025.
• The site encompasses both freehold and leasehold land in London’s prestigious Zone 1, near leading universities and hospitals, indicating high demand and strong rental prospects.
• Shareholder agreements include put and call options that could affect ownership structure post-completion and valuation-based payments on potential buyouts.

In-Depth Details of the Acquisition

Centurion Corporation Limited, a leading accommodation provider, has announced the acquisition of a strategically-located property in Central London, aimed at developing a new 225-bed PBSA. The transaction, finalized on 14 October 2025, is structured as a joint venture with Landmark Properties via Landmark UK PBSA JV I Limited (JVCo), incorporated in Jersey.

Acquisition Structure and Financing:

• The JVCo purchased the property from Euston One Limited and Euston Two Limited for GBP 40.86 million (S\$70.72 million), with completion on 14 October 2025.
• COI contributed interest-free loans of GBP 1.09 million (S\$1.88 million) to JVCo, which were converted into shares, and subsequently purchased nearly all of Landmark UK Bidco’s shares in JVCo (1,064,300 out of 1,086,020 issued shares).
• COI and Landmark UK Bidco also advanced proportionate interest-free bridging loans totaling GBP 42.38 million and GBP 0.43 million respectively.
• The end result is COI holding 99% of JVCo, with Landmark UK Bidco retaining 1% and associated shareholder loan interests.

Put and Call Options – Potential Price Sensitivity:

• Landmark UK Bidco holds a put option to require COI to purchase its remaining JVCo shares and loans after project completion and valuation. If not exercised, COI can call the option and purchase these interests.
• The consideration for these options depends on fair market value, determined by independent valuations and/or bona fide third-party offers, which could introduce future price sensitivity depending on market conditions and performance of the property.

Prime London Location and Development Plans:

• The freehold land (35-37 William Road) will be redeveloped into a 225-bed PBSA, featuring studio and en suite cluster accommodations, with a basement, ground floor, 14 upper levels, and substantial communal amenity space.
• The leasehold land (17-33 William Road) will be refurbished to provide 1,090 sqm of affordable office space.
• The property is located in Camden’s Regent’s Park Estate, within walking distance to University College London, Birkbeck, SOAS, and UCL Hospital, ensuring strong appeal and occupancy prospects.

Valuation and Financial Impact:

• COI’s aggregate consideration is GBP 43.47 million (S\$75.23 million), which includes all acquisition and transaction costs.
• The independent valuation by Jones Lang LaSalle pegs the property value at GBP 35.54 million (S\$61.51 million).
• Despite the significant investment, the transaction is not expected to materially affect Centurion’s net tangible assets or earnings per share for the year ending 31 December 2025.

Strategic Rationale:

• This acquisition aligns with Centurion’s strategy to grow its student accommodation portfolio in key UK markets, leveraging strong demand, especially in Central London.
• It demonstrates Centurion’s continued ability to secure highly attractive assets in regions with robust rental and occupancy prospects.

Matters of Interest to Shareholders

• The exercise of put and call options post-completion could impact JVCo ownership and future cash flows, depending on project valuation and market interest.
• The acquisition strengthens Centurion’s presence in a core UK market, potentially supporting future rental income and asset appreciation, which may be price sensitive over the medium term.
• No directors or controlling shareholders have any direct or indirect interest in the acquisition beyond their shareholdings in Centurion Corporation.

Conclusion

This acquisition signals Centurion’s commitment to expanding its UK student accommodation portfolio, securing a prime London site with excellent rental prospects and proximity to major academic institutions. The structure and scale of the investment, combined with the put and call option mechanisms, mean this deal could have future price-sensitive ramifications depending on project completion, valuation, and market performance. Investors should monitor developments closely, especially as the project nears completion and the options are potentially exercised.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should perform their own due diligence and consult professional advisors before making any investment decisions related to Centurion Corporation Limited.

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