Centurion Accommodation REIT Receives Approval for Expanded Capacity at Westlite Toh Guan

Key Developments

• Approval Received for Additional Bed Capacity: Centurion Accommodation REIT has received regulatory approval to retain an additional 664 beds at its Westlite Toh Guan property, extending its total permissible bed capacity beyond previously approved limits until 31 December 2028.
• FEDA Licence Secured: The Manager has successfully obtained the Foreign Employee Dormitories Act (FEDA) licence for the newly constructed block with 1,764 beds, following the grant of the temporary occupation permit.
• Transition in Licensing: A new FEDA licence application will be made to cover the expanded total capacity, replacing the previous licence granted specifically for the new block.
• Potential Impact on Revenue: The retention of the 664 beds, which were previously required to be reduced, allows the REIT to maintain its maximum operational capacity at 8,430 beds. This is significant, as it supports higher rental income and operational stability over the next three years.

Details for Investors

Centurion Accommodation REIT, managed by Centurion Asset Management Pte. Ltd., has announced a major regulatory milestone for its Westlite Toh Guan dormitory. The property recently completed a new block which adds 1,764 beds, and the Manager has secured the required FEDA licence to operate these beds.

Previously, approvals stipulated that with the completion of the new block, the existing 7,330 beds would need to be reduced so that the overall bed capacity would not exceed 8,430 beds—a net reduction of 664 beds. However, the Manager has now received approval to retain the full 8,430 bed capacity, including the 664 beds that would otherwise have been removed. This extension is valid until 31 December 2028.

The Manager will apply for a new FEDA licence to reflect this expanded capacity, ensuring continued lawful operation and optimised asset utilisation.

Notably, maintaining the higher bed count can lead to increased rental revenue and enhanced cash flow, which is material information for shareholders and could be price sensitive. The retention of these beds for a multi-year period improves the predictability of earnings and supports the REIT’s growth prospects.

Important Notes for Shareholders

• Operational Capacity: The ability to operate at maximum bed capacity until end-2028 directly supports the REIT’s rental income and financial projections.
• Regulatory Compliance: All operations at Westlite Toh Guan remain compliant with Singapore’s Foreign Employee Dormitories Act through the new licensing arrangement.
• Time-Limited Approval: The approval to retain the expanded capacity is valid until 31 December 2028. Investors should monitor any developments regarding future extensions or reductions post-2028.
• Potential Price Sensitivity: The material increase in operational beds supports higher revenue and may positively influence the REIT’s share price, especially as the news reflects regulatory support and enhanced asset utilisation.

Additional Information

• IPO and Listing: Centurion Accommodation REIT is newly listed, with DBS Bank Ltd. and UBS AG, Singapore Branch acting as joint issue managers and underwriters.
• Trading: Units are traded on the Singapore Exchange Securities Trading Limited (SGX-ST), and liquidity is not guaranteed.

Disclaimer

This article is intended for informational purposes only and does not constitute financial advice, an offer, or solicitation to buy or sell any securities of Centurion Accommodation REIT. Investors should consider the risks involved, including market and regulatory risks, and refer to the official prospectus and announcements for comprehensive details. Past performance and forward-looking statements are not indicative of future results, and investment in REIT units may result in loss of principal.

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