[SINGAPORE] A unit of dormitory operator Centurion Corporation has acquired another dormitory operator in Johor for RM110.8 million (SG$33.2 million), the mainboard-listed company said in a bourse filing on Tuesday (Sep 2).
Centurion’s wholly owned subsidiary Centurion Dormitories did so by acquiring all the issued shares in Malaysia-incorporated Harum Megah, the group said. The acquisition is funded by the internal resources of the subsidiary.
Harum Megah owns and operates a portfolio of six purpose-built worker accommodation in Johor, with a total of 7,197 beds.
With the acquisition, Centurion’s Malaysian portfolio will expand to 35,610 beds, representing a 25 per cent increase in total bed capacity.
“Strategically located in mature industrial estates, the six assets benefit from strong migrant workforce catchment, supported by healthy occupancies and an established customer base, and will be immediately accretive to the group’s earnings,” Centurion said.
The company noted that all six assets are fully operational and licensed as centralised labour quarters.
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Centurion noted that it signed a letter of intent with the Iskandar Regional Development Authority, expressing intent to double its bed capacity in Johor in the next five years, with a potential investment of between RM300 million and RM500 million into the Johor-Singapore Special Economic Zone (JS-SEZ).
It said the acquisition marks “a significant step” in advancing this strategy.
Centurion’s operational worker accommodation assets are managed under the “Westlite Accommodation” brand, which has 10 worker accommodation assets in Singapore, eight in Malaysia and one in China.
Centurion shares closed flat at S$1.73 on Tuesday.
