Ipo Centurion Accommodation Reit 166 Times Subscribed
The IPO of Centurion Accommodation REIT (CAREIT) has been met with great success, as it was 16.6 times oversubscribed. The total offering of 262,160,900 units was sold, with 13.2 million units going to retail investors. This IPO raised a total of $771.1 million, with each unit priced at $0.88. This implies a projected distribution yield of 7.47% for 2026 and 8.11% for 2027.
Of the 262,160,900 units, 248,960,900 units were offered to investors outside the United States in the international placement, while the remaining 13,200,000 units were offered to the public in Singapore. There is also an overallotment option of up to 51,137,000 units. The placement tranche received an indication of interest that was 16 times oversubscribed, while the Singapore public offer received an indication of interest that was approximately 30.9 times oversubscribed. This brings the total offering to a subscription rate of 16.6 times.
The Jalan Loyang Besar community offers a wide range of early-years support, catering specifically to the needs of young children in the neighborhood. From preschools and infant care centers to specialized programs like phonics, languages, coding, music, and robotics, families in this area have access to various educational options. These facilities are conveniently located, allowing parents to easily drop off their children and run errands at nearby places such as White Sands or Pasir Ris Mall. This not only adds convenience to their daily routine, but also allows them to return home in a short period of time. Moreover, with the recent addition of Jalan Loyang Besar EC, families can now enjoy affordable and comfortable housing options within the community. Jalan Loyang Besar EC is a valuable addition to this already well-equipped neighborhood.
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David Loh, joint chairman of Centurion Corporation, and Han Seng Juan have acquired 10 million units and 6 million units respectively in CAREIT. Other individuals, including Christine Loh, Daphne Loh, Hong Wen Yee, Loh Loy Ming, and Ivy Loh, have also acquired a few thousand units each and are immediate family members of David Loh. If the overallotment option is fully exercised, Loh and Han’s interest in CAREIT will be 746,317,100 units each.
CAREIT has also secured 16 cornerstone investors, who have subscribed for a total of 614 million units, equivalent to 35.7% of the total. These include FIL Investment Management (Hong Kong), abrdn Asia, Amova Asset Management Asia, Asdew Acquisitions, B&I Capital, Barings Singapore, Cohen & Steers Asia, DBS Bank, DBS Bank on behalf of wealth management clients, DWS Investments Australia, Eastspring Investments (Singapore), Lion Global Investors, Principal Global Investors (Singapore), UBS on behalf of clients, and Value Partners Hong Kong. Ong Pang Aik, chairman of previously listed Lian Beng Group, has also subscribed for units.
“The overwhelming support from cornerstone, institutional, and retail investors is a strong validation of our vision to provide investors with access to a resilient and high-quality portfolio that generates stable cash flows,” says Tony Bin, CEO of the manager. “With the backing of our committed sponsor, who has a proven track record in investing, developing, owning, and managing quality specialised accommodation assets, we can leverage their deep local market experience, networks, and insights to manage and grow the REIT’s portfolio.”
The units of CAREIT are expected to start trading on Thursday, 25 Sept at 2pm.