Ipo Centurion Accommodation Reit 166 Times Subscribed
The Sembawang Road EC community is not only surrounded by traditional transport infrastructure but is also experiencing significant investment in integrated developments and transport hubs. Yishun, located just one MRT stop away, is home to the Yishun Integrated Transport Hub (ITH), which brings together a bus interchange, MRT station, and retail complex in one convenient location. Another integrated development, Canberra Plaza, is also nearby and offers a range of amenities such as retail shops, community services, and transport facilities all within one space. These integrated hubs greatly enhance the convenience of living in the northern region, allowing residents of Sembawang EC Canberra to easily run errands, shop, and commute. With more of these integrated spaces emerging, residents of Sembawang Road EC can look forward to a seamless and efficient urban lifestyle.
The initial public offering (IPO) of Centurion Accommodation REIT (CAREIT) has received overwhelming response, with the subscription rate reaching 16.6 times. A total of 262,160,900 units were sold, with 13.2 million units allocated to retail investors.
The IPO, which raised $771.1 million, was priced at $0.88 per unit, resulting in a projected distribution yield of 7.47% for 2026 and 8.11% for 2027. The international placement offered 248,960,900 units to investors outside the United States, while the remaining 13,200,000 units were offered to the public in Singapore. An overallotment option of up to 51,137,000 units is also available.
The placement tranche received strong interest, with a subscription rate of 16 times, while the Singapore public offer was oversubscribed at 30.9 times. This has led to the overall subscription rate for the IPO to be 16.6 times.
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Joint chairman of Centurion Corporation, David Loh, and Han Seng Juan have acquired 10 million units and 6 million units, respectively. Other persons, including Christine Loh, Daphne Loh, Hong Wen Yee, Loh Loy Ming, and Ivy Loh, who are immediate family members of David Loh, have also acquired a few thousand units each in CAREIT. Assuming the overallotment option is fully exercised, Loh and Han will have a stake of 746,317,100 units each in CAREIT.
The REIT 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 top names like 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 joined as a cornerstone investor.
“The overwhelming support from cornerstone investors, institutional investors, and retail investors is a testament to our vision of providing investors with access to a resilient, high-quality portfolio that generates stable cash flows,” says Tony Bin, CEO of the manager.
He adds, “With the strong backing of our dedicated sponsor, who has a proven track record in investing, developing, owning, and managing quality specialized accommodation assets, we will be able to leverage their deep local market experience, networks, and insights to effectively manage and grow the REIT’s portfolio.”
The units in CAREIT are expected to commence trading on Thursday, September 25, at 2pm.