Centurion exploring Reit listing for workers and student accommodation assets

CENTURION Corporation is currently exploring the establishment of a real estate investment trust (Reit) comprising some of its workers and student accommodation assets.

If the plan materialises, the Reit will be listed on the mainboard of the Singapore Exchange (SGX), subject to approval from the bourse and the Monetary Authority of Singapore, said the accommodation assets operator in a filing on Tuesday (Jan 7).

Centurion’s chief executive officer Kong Chee Min said that the company is also considering a dividend-in-specie of some of the units in the proposed Reit held by the company to shareholders.

Centurion is working with DBS Bank and the Singapore branch of UBS to explore the proposal. It is considering the details, including the terms and the timing of the listing.

“The proposed transaction will be subject to, among other things, market conditions, commercial negotiations and the relevant regulatory, shareholders’ and other approvals being obtained and the execution of definitive agreements by the relevant parties,” said Centurion.

The company also advised shareholders to note that there is no certainty or assurance that the proposed Reit listing will occur, or occur in the form as described.

In January 2015, Centurion said that it was exploring the establishment of a Reit and injecting some of its worker accommodation assets into the Reit.

However, in March of the same year, the company announced its decision to defer and reconsider the proposal “to a later stage”.

This followed further consultation with SGX, which noted that the proposed listing of the Reit would be considered a chain listing under Listing Rule 210(6).

Under that rule, SGX will normally not approve the listing of a subsidiary of a listed issuer if the assets and operations of that subsidiary are substantially the same as that of the listed issuer.

Centurion closed up S$0.015 or 1.6 per cent at S$0.96 on Tuesday, before the announcement.