Singapore: Centurion Corp to acquire student hostel asset near Yale for $70m

College & Crown student hostel. Credit: Centurion Corporation

Singapore’s Centurion Corporation Limited is planning to acquire US-based College & Crown, a 160-unit student accommodation asset with 204 beds, for an aggregate consideration of about $70 million (S$95 million).

The acquisition of the hostel, strategically located close to Yale University, will be in addition to the proposed purchase of a portfolio of 1,936 beds across five student accommodation assets for $136 million (S$185 million) announced on July 24.

Overall, the group is anticipated to own a combined portfolio of six high-quality student accommodations in five US states with approximately 2,140 beds for about $206 million (S$281 million). Centurion intends to own an interest of up to 30 per cent in the combined portfolio, with the third party investors holding the rest.

Complete in 2015, College & Crown offers quality communal spaces and amenities including a resident courtyard, fitness area with a private yoga studio, and a pet-friendly outdoor seating plaza. The asset is situated in one of the best locations within the core Yale District in the downtown New Haven sub-market.

The proposed acquisition of College & Crown, together with the portfolio assets, is expected to complete by September end this year, and will be earnings accretive to the group’s results for Q4 2017.

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Similar to the portfolio assets, Centurion will also form a joint venture (JV) with a US student accommodation manager to co-manage College & Crown under Centurion’s student accommodation brand, Dwell.

Upon completion, the asset will serve as the Group’s flagship asset in the U.S., as it caters to one of the most renowned universities globally and further establishes the Dwell brand in the key U.S. hub for higher education.

With the anticipated addition of 2,140 beds from the combined US portfolio, Centurion will have a total of 5,172 beds under management across 16 student accommodation assets in four geographical locations, namely the US, UK, Australia and Singapore.

Commenting on the Group’s latest acquisition target in the US, Kong Chee Min, CEO of Centurion Corporation Limited, said, “The proposed acquisition of College & Crown will further boost our expansion plans in the US Situated at a prime location and a stone’s throw away from Yale University, this asset attracts not only undergraduate and graduate students but also resident doctors, professors and researchers.”

“It will also further heighten the profile of our dwell brand as one of the leading providers of high-quality student accommodation assets and management services, as we diversify our business in the resilient student accommodation sector.”

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