Centurion Corporation Makes Strategic Investment in Australian Student Accommodation Project

Key Highlights

• Centurion Corporation Limited, through its indirect wholly-owned subsidiary Centurion Overseas Investments (II) Pte. Ltd. (“COI(II)PL”), has entered into a Subscription and Shareholder Agreement to acquire a 25% stake in Stirling Highway Development Pty Ltd (“SHD”), an Australian property development company.
• The consideration for the 6 million shares is AUD6.0 million (approx. SGD5.1 million), equating to a 25% equity interest in SHD.
• SHD is developing a major 472-bed purpose-built student accommodation (“PBSA”) project in Perth, Australia, with completion targeted for December 2027. The PBSA will operate under Centurion’s “Epiisod” brand.
• The transaction is classified as an Interested Person Transaction (IPT), involving Centurion’s controlling shareholders and their associates, but does not trigger shareholder approval or disclosure requirements under SGX rules due to its size.
• The investment is not expected to have a material impact on Centurion’s consolidated net tangible assets or earnings per share for FY2025.

Detailed Investment Overview

Centurion Corporation Limited (“Centurion”), a leading accommodation provider listed on the Singapore Exchange, has announced the entry into a Subscription Agreement through its subsidiary, COI(II)PL, to invest AUD6.0 million (approx. SGD5.1 million) for a 25% stake in SHD. SHD’s principal activity is property development, specifically the construction of a new student accommodation facility located at 37-43 Stirling Highway, Nedlands, Perth, Australia.

Post-transaction, SHD’s shareholding will be split 75% to Centurion Properties Australia Investments Pty Ltd (“CPAI”), and 25% to COI(II)PL. Notably, CPAI is a wholly-owned subsidiary of Centurion’s controlling shareholders, making this an Interested Person Transaction under SGX rules.

The consideration was determined on a willing-buyer, willing-seller basis, with reference to SHD’s net asset value of AUD17.7 million (SGD15.0 million) as at 31 October 2025 and an independent market valuation of the development site at AUD34.65 million (SGD26.36 million) dated 19 November 2025. The investment will be funded by internal resources of COI(II)PL.

Project Details and Strategic Rationale

The development project encompasses the construction of a 472-bed PBSA targeted for completion by December 2027. The total funding for the project will be sourced via a combination of bank financing and shareholders’ loans, with corporate guarantees provided by each shareholder in proportion to their equity stakes, unless otherwise agreed.

Upon completion, the PBSA will be operated under Centurion’s Epiisod student accommodation brand and management platform, strengthening Centurion’s position in the Australian PBSA market. This strategic investment aligns with Centurion’s broader strategy of expanding its accommodation business globally and will further enlarge Centurion’s portfolio in Australia.

Financial Impact and Shareholder Considerations

The transaction is not expected to materially affect Centurion’s consolidated net tangible assets or earnings per share for the fiscal year ending 31 December 2025.

Under SGX Listing Manual Rule 1006, the relative figures for the transaction are below 5%, rendering the deal a “Non-discloseable Transaction” for Chapter 10 purposes. However, the announcement is made under Rule 706A due to the nature of the investment.

As an Interested Person Transaction, the deal falls below the 3% threshold of Centurion’s latest audited net tangible assets (SGD1,235.1 million as at 31 December 2024), so neither shareholder approval nor further disclosure is required. However, investors should note the involvement of key controlling shareholders and directors in the transaction, including Mr Han Seng Juan and Mr Loh Kim Kang David, both Joint Chairmen of the Board, and Mr Wong Kok Hoe, Executive Director and Deputy Chairman.

Transparency and Documentation

For investor transparency, the Subscription Agreement and the valuation report are available for inspection at Centurion’s registered office for three months from the date of the announcement.

Potential Share Price Implications

This investment signals Centurion’s continued commitment to the student accommodation sector, particularly in Australia, a key growth market. The acquisition of a significant stake in a new, large-scale PBSA project could position Centurion for further revenue growth and asset appreciation post-2027, aligning with its global expansion strategy.

While the immediate financial impact is not material for FY2025, the successful completion and operation of the PBSA could enhance Centurion’s recurring income and asset base, which may be supportive of share price performance over the medium to long term.

Investors should monitor execution risks, including project financing, construction timelines, and market demand for student accommodation in Perth. Additionally, the transaction’s related-party nature should be considered in the context of corporate governance and minority shareholder interests.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making any investment decisions. The views expressed are based on publicly available information as at the date of this report and may be subject to change.

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