Centurion: (S$0.545) New student accommodation in Singapore
Centurion has been awarded a tender to operate a student hostel at Short Street, its first in Singapore.
The 10-storey property will have a lease term of 8 years and will be renovated to house 400 students, with commercial spaces for F&B outlets, with completion in 2H15.
This brings the total number of beds in Centurion’s student accommodation portfolio to 2,770 by end-2015.
Separately, we note that Centurion is currently conducting a non-deal roadshow in Hong Kong to raise investor awareness.
Post-1Q15 results released last week, the street has maintained its bullish view on Centurion, largely due to its:
1) leadership position in Singapore as a foreign workers' accommodation provider;
2) stable growth from its student accommodation portfolio in UK and Australia; and
3) strong pipeline to grow accommodation portfolio from 45,662 beds at present to over 74,100 (+62%) by end-2017.
Market Insight continues to favour Centurion's unique business model and maintains the counter's position in the Growth portfolio.
Latest broker ratings (post-results):
DBSV maintains Buy with TP at $0.85
RHB maintains Buy with TP at $0.75
Maybank-KE maintains Buy with TP at $0.70
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