Centurion

Centurion: has made its first foray into the student accommodation business, after being selected as the successful bidder for the RMIT Village and an adjoining car park building in Melbourne, for a total purchase consideration fo A$60m. RMIT Village is located on the northern edge of Melbourne’s CBD, in close vicinity to RMIT University and the University of Melbourne. Sited on a 4,000 sqm freehold land parcel, the accommodation comprises 229 apartments and a current capacity of ~456 beds. Typically, RMIT University reservations account for 70% of the total occupied beds annually. Occupancy at RMIT Village has been close to 100% in the past three years. The existing student accommodation presents asset enhancement opportunities to increase its bed capacity in the future. The adjoining car park building may also be redeveloped into new apartment buildings for university students and/or staff working in the healthcare industry in the vicinity. The proposed acquisition is in line with Centurion’s business strategy to expand its scope of business to include the student accommodation business and further grow its regional presence. As an operational asset, the proposed acquisition of RMIT Village will be earnings accretive for Centurion and is expected to contribute to its bottom line upon completion of the acquisition which is expected in early 2014. The proposed acquisition will be funded through proceeds from Medium Term Notes issued back in Oct and bank borrowings. Centurion currently owns eight worker accommodation assets spread out across Singapore and Malaysia with a total bed capacity of over 30,000 beds.