Centurion Accommodation REIT Completes Strategic Acquisition of 732-Bed EPIISOD Macquarie Park, Marking Entry into Sydney PBSA Market

Key Highlights

• Acquisition of Newly Developed EPIISOD Macquarie Park: CAREIT has successfully completed the acquisition of a premium, 732-bed Purpose-Built Student Accommodation (PBSA) asset in Sydney, Australia, branded under the new EPIISOD label.
• Fully Debt-Funded Transaction: The acquisition, valued at A\$345.0 million (S\$280.1 million), was financed entirely via committed debt facilities, allowing CAREIT to maintain healthy gearing and sufficient debt headroom for future asset enhancement and acquisitions.
• First Step into Sydney PBSA Market: The deal marks CAREIT’s inaugural entry into Sydney’s PBSA sector and its second Australian city, expanding its international footprint.
• Significant Portfolio Expansion: With this acquisition, CAREIT’s portfolio grows to 15 assets across Singapore, the UK, and Australia, with an aggregate valuation rising to S\$2.1 billion.
• Income Stability Secured by Master Lease: The property is secured by a master lease agreement with Centurion Properties Pte. Ltd. (CPPL) and the Sponsor, Centurion Corporation Limited, providing fixed income until 31 December 2027, alongside a two-month rental security deposit and corporate guarantees.
• Strategic Location and Premium Amenities: EPIISOD Macquarie Park is situated in the heart of the Macquarie Innovation Precinct, near leading educational institutions and transport hubs, and offers top-tier amenities including a rooftop pool, wellness centre, and tech-enabled living features.
• Favourable Market Dynamics: The Australian PBSA sector continues to experience robust demand and supply constraints, which supports the long-term value and occupancy rates of well-located PBSA assets.

Detailed Report for Investors

Centurion Accommodation REIT (CAREIT) has announced the completion of its acquisition of the newly developed, 732-bed EPIISOD Macquarie Park, a premium PBSA asset in Sydney. The transaction, conducted via a Forward Purchase Agreement and finalized upon Practical Completion, signifies CAREIT’s strategic entry into the Sydney PBSA market, its second city in Australia after Melbourne.

Premium Student Living Experience: The EPIISOD Macquarie Park is operated under the EPIISOD brand, a new, design-led premium student accommodation concept by Centurion Corporation Limited. The property boasts modern, technology-enabled living spaces, including smart entry systems and a resident app. Residents have access to a suite of high-end communal amenities such as a rooftop pool, terrace lounge, BBQ-equipped dining area, wellness centre with a commercial gym, yoga studio, and a full-service café. These features position the property as a benchmark for student living in Sydney, prioritizing community, wellbeing, and academic success.

Prime Location: The asset is strategically located in the Macquarie Innovation Precinct, an area known for its vibrant lifestyle and close proximity to Macquarie University, Macquarie Park Shopping Centre, the Macquarie University Metro Station, and major employment hubs. Its connectivity to Sydney’s CBD and leading universities such as University of Technology Sydney and the University of Sydney enhances its appeal to domestic and international students.

Favourable Market Fundamentals: The Australian PBSA sector continues to exhibit strong demand amidst tight supply, driven by a rebound in international student arrivals and limited new PBSA developments. This ongoing supply-demand imbalance is expected to underpin healthy rental growth and occupancy levels for strategically located PBSA assets, making the acquisition both timely and accretive.

Stable and Predictable Cash Flows: To ensure income stability, CAREIT has entered into a master lease agreement with CPPL and the Sponsor, effective until 31 December 2027. The lease includes a two-month rent security deposit, step-in rights, and a corporate guarantee, all of which provide critical downside protection in the event of tenant default or lease breaches. This structure is designed to safeguard unitholder interests and maintain stable distributions.

Balance Sheet and Growth Potential: The acquisition was fully funded by committed debt facilities, preserving CAREIT’s liquidity and gearing capacity. Post-acquisition, the REIT maintains ample debt headroom, positioning it to pursue further asset enhancements and inorganic growth opportunities.

Portfolio Overview: With the addition of EPIISOD Macquarie Park, CAREIT’s enlarged portfolio now comprises 15 assets, including 5 Purpose-Built Worker Accommodation (PBWA) assets in Singapore and 10 PBSA assets split between the UK and Australia. The total portfolio valuation has increased to S\$2.1 billion, underscoring CAREIT’s rapid growth trajectory since its IPO in September 2025.

Management Commentary: Tony Bin, CEO of CAREIT’s Manager, highlighted that this acquisition is pivotal in building a high-quality, diversified accommodation portfolio. He reiterated the commitment to delivering sustainable value through a focus on performance with purpose, prioritizing resident wellbeing and community.

Implications for Shareholders

• Potential Share Price Catalyst: The completed acquisition and entry into Sydney’s PBSA market represent a significant expansion for CAREIT, potentially boosting its income visibility, portfolio quality, and geographic diversification—factors that can positively impact share price performance.
• Stable Income and Downside Protection: The master lease arrangement guarantees income through 2027, enhancing distribution predictability for unitholders and reducing operational risks associated with direct leasing to individual students.
• Scope for Further Growth: The REIT’s healthy debt position post-acquisition allows for continued portfolio growth and asset enhancement, positioning CAREIT to capitalize on opportunities as market conditions evolve.
• Premium Brand Positioning: The EPIISOD brand’s focus on high-quality, experience-driven student accommodation may attract premium rents and support higher occupancy, which can translate to better returns for investors.
• Exposure to Resilient Asset Classes: CAREIT’s diversified exposure to both PBSA and PBWA segments across three major markets (Singapore, UK, Australia) mitigates geographic and sector-specific risks.

Contact Information

Investor Relations: Chen Xin Yu, Investor Relations Manager, [email protected]
Media Enquiries: Kamal Samuel / Louise Lim, Financial PR, [email protected]

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 conduct their own due diligence and consult with professional advisers before making investment decisions. The information contained herein is based on public disclosures as of the date of writing, and no representation or warranty is made as to its accuracy or completeness.

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