The asset comprises two adjoining parcels of land in the Pasir Gudang industrial area
[SINGAPORE] Centurion Corporation has entered into an agreement to acquire a 7,974 bed purpose-built worker accommodation asset in Pasir Gudang, Johor, for RM214.5 million (US$53 million), the property group said in an announcement on Tuesday (Sep 8).
The acquisition comprises two adjoining parcels of 60-year leasehold land at Jalan Keluli in the Pasir Gudang industrial area, with leases expiring in May 2069. The property comprises 444 apartment-style units across eight five-storey blocks, with a total built-up area of about 749,358 square feet on a 9.73 acre site.
The first parcel, comprising about 3,978 beds, is operating and tenanted by employers in surrounding industrial estates, including manufacturers, logistics operators and services providers. The parcel is expected to be earnings accretive when the acquisition is completed, Centurion said.
The second parcel, with about 3,996 beds, recently completed development and will be progressively leased following the acquisition.
The asset will be managed under Centurion’s Westlite Accommodation brand. Centurion said the transaction is subject to approval from the Johor state authority and the satisfactory completion of the group’s due diligence.
Centurion currently manages 13 purpose-built worker accommodation assets with about 36,006 beds across Johor, Penang and Selangor. The acquisition will increase its bed capacity in Malaysia by 22 per cent to about 43,980 beds, making the Pasir Gudang property its largest worker accommodation asset in the country.
The group has operated in Malaysia since 2011.
Centurion noted in the announcement that it remains positive on Malaysia’s long-term outlook, on the back of demand for compliant, purpose-built worker accommodation.
The company noted that industrial and manufacturing activity in Johor, including within the Johor-Singapore Special Economic Zone, will continue to attract foreign and domestic labour.
SEE ALSO
“We have operated in Johor for years, and understand the market well,” said Centurion CEO Kong Chee Min. “As more manufacturers establish operations in Johor, demand for compliant worker accommodation continues to grow.”
The newly acquired asset is located near Pasir Gudang’s manufacturing estates, and within 5 km of the Tanjung Langsat heavy industry corridor.
Shares of Centurion closed 3.1 per cent lower or S$0.05 to reach S$1.54 on Tuesday, before the announcement.
