Centurion Accommodation REIT Secures Temporary Occupation Permit for Major Westlite Mandai Expansion

Key Milestone Achieved for Portfolio Growth, Material Payments and Capacity Uplift

Centurion Asset Management Pte. Ltd., the manager of Centurion Accommodation REIT (“Centurion REIT”), has announced the receipt of the Temporary Occupation Permit (TOP) for the significant expansion block at Westlite Mandai. This marks a major milestone in the REIT’s ongoing development pipeline and is expected to have notable implications for investors and the market.

Key Points from the Announcement

• TOP Received for Westlite Mandai Expansion: The new block adds 3,696 beds to Westlite Mandai, with construction having commenced in February 2024. This is part of the previously disclosed “Relevant Westlite Works” in the REIT’s prospectus.
• S\$26.35 million in Retained Funds to Be Released: Following the TOP for both Westlite Mandai and the additional block at Westlite Toh Guan (which received TOP on 25 October 2025), a total of approximately S\$26.35 million will be released to the vendors of these projects. This sum represents 85% of the S\$31.0 million that was previously retained to mitigate project completion risks, with the balance payable upon achieving further milestones.
• Capacity Retention and Regulatory Approvals: While the original plan required the reduction of 1,980 beds in existing blocks at Westlite Mandai (to comply with a cap of 8,006 beds), the Mandai Expanded Capacity has now been approved. The REIT can retain the extra 1,980 beds until at least 31 December 2030, pending regulatory approval.
• FEDA Licence Application: Centurion has applied for a Foreign Employee Dormitories Act (FEDA) licence for a total of 9,986 beds at Westlite Mandai, inclusive of the retained beds under the Mandai Expanded Capacity.
• Further Payment Obligation: Upon receipt of the FEDA licence, the REIT will pay the Mandai Expanded Capacity Consideration of S\$34.0 million to Lian Beng-Centurion (Mandai) Pte. Ltd.
• Joint Issue Managers and Bookrunners: DBS Bank Ltd. and UBS AG, Singapore Branch are acting as joint issue managers, global coordinators, and joint bookrunners/underwriters for the IPO of Centurion Accommodation REIT.

Potential Price-Sensitive and Shareholder-Relevant Information

• Material Completion and Payment: The receipt of the TOP and imminent release of S\$26.35 million to vendors is a significant event, reducing project risk and indicating the REIT’s ability to deliver on its development pipeline. This could positively impact investor confidence and the REIT’s immediate cash flow management.
• Capacity Expansion: The retention of an additional 1,980 beds until 2030 (subject to FEDA licence) increases the REIT’s revenue-generating potential beyond original projections, which is potentially accretive to earnings and distributions.
• Regulatory Risk Mitigated: Approval of expanded capacity reduces regulatory overhang and provides greater operational certainty for the REIT through 2030.
• Further Capital Commitment: The upcoming S\$34.0 million payment upon FEDA licence receipt is a material obligation and could impact the REIT’s balance sheet and cash reserves.

Additional Details

• Milestone-Based Payments: The total S\$31.0 million retained was to mitigate completion risks; S\$26.35 million is being released now, with the balance to follow as further project milestones are met.
• Market Liquidity and Trading: Units are listed on the SGX-ST, and investors can only trade through this exchange. There is no guarantee of market liquidity.
• Forward-Looking Statements: The announcement contains forward-looking statements subject to risks and uncertainties; actual performance may differ from projections.

Conclusion

The successful completion and approval of the Westlite Mandai expansion represent a substantial positive development for Centurion Accommodation REIT, with immediate financial and long-term operational benefits. The ability to retain expanded bed capacity until 2030, along with the upcoming FEDA licence, positions the REIT for enhanced revenue generation. Investors should monitor further announcements regarding the FEDA licence and subsequent capital commitments.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any securities. All investments are subject to risk, including the possible loss of principal. Investors should consult the full prospectus and seek professional advice before making investment decisions. Actual results may differ materially from forward-looking statements due to various risks and uncertainties.

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