Centurion Accommodation REIT Receives Temporary Occupation Permit for Westlite Mandai Expansion

Key Developments

• Temporary Occupation Permit (TOP) Granted for Westlite Mandai Additional Block:
  Centurion Accommodation REIT, managed by Centurion Asset Management Pte. Ltd., has received the TOP for an additional block at Westlite Mandai. This new block adds 3,696 beds and marks a significant milestone in the REIT’s asset enhancement strategy.
• Release of Retained Funds:
  Approximately S\$26.35 million will be released to the vendors of both Westlite Mandai and Westlite Toh Guan. This sum represents 85% of the S\$31 million previously retained by Centurion Accommodation REIT to mitigate against completion risks associated with the project.
• Bed Capacity Adjustment and Regulatory Update:
  With the completion of the new block, the existing 6,290 beds at Westlite Mandai were initially to be reduced to comply with the maximum permitted bed capacity of 8,006. This would have required a reduction of 1,980 beds. However, due to the approval of the Mandai Expanded Capacity by relevant authorities, these 1,980 beds can now be retained until 31 December 2030, increasing the operational capacity and potential revenue.
• FEDA Licence Application for Expanded Capacity:
  An application has been submitted for a Foreign Employee Dormitories Act (FEDA) licence covering 9,986 beds, including the 1,980 beds retained under the expanded capacity.
• Mandai Expanded Capacity Consideration:
  Upon receipt of the FEDA licence, Centurion Accommodation REIT will pay S\$34.0 million to Lian Beng-Centurion (Mandai) Pte. Ltd. for the expanded capacity.
• Previous Milestone for Westlite Toh Guan:
  Note that the additional block with 1,764 beds at Westlite Toh Guan received its TOP on 25 October 2025, as previously announced.

Implications and Price-Sensitive Information

• Significant Increase in Bed Capacity:
  The retention of the additional 1,980 beds at Westlite Mandai until the end of 2030 effectively increases the REIT’s capacity and revenue-generating potential for the next five years. This regulatory approval is a positive surprise and could have a material impact on earnings.
• Release of S\$26.35 Million:
  The release of a substantial retained sum improves cash flows for vendors and signals the successful completion of major project milestones, reducing execution risk.
• Potential for Further Payouts:
  The remaining portion of retained funds (15% of S\$31 million) will be paid upon achieving additional milestones, providing further operational visibility.
• FEDA Licence and Consideration Payment:
  The pending FEDA licence application, once approved, will trigger a S\$34 million payment and formalize the expanded capacity, further cementing the REIT’s growth trajectory.

Important Notes for Investors

• Market Sensitivity: The approval to retain the expanded bed capacity until 2030 is a material upside surprise and could drive share price appreciation due to increased earnings visibility and higher revenue potential.
• Execution and Regulatory Risks: Investors should monitor the progress of the FEDA licence application and the achievement of further project milestones, as these are prerequisites for additional payments and operational ramp-up.
• Investment Risks: As always, investment in REIT units is subject to market risks, and the value of units may fluctuate. Units cannot be redeemed directly from the manager but can only be traded on the SGX-ST.

Summary

Centurion Accommodation REIT has achieved significant progress with the receipt of the TOP for its Westlite Mandai expansion, enabling it to retain an additional 1,980 beds until 2030. This regulatory approval, combined with the release of substantial retained funds and the pending FEDA licence, positions the REIT for robust near-term earnings growth and operational expansion. Investors should closely monitor the FEDA licence process and subsequent milestones for further value-unlocking events.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any securities. Investors should refer to the official prospectus and consult with their financial advisers before making any investment decisions. Past performance is not indicative of future results. All investments carry risks, including the possible loss of principal.

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