Centurion Corporation Limited, which owns and manages workers and student accommodation facilities, has announced that it would acquire Benikea Hotel KP in South Korea at a purchase consideration of KRW13.5 billion ($12 million).
This marks the SGX-listed firm’s entry into North Asia.
The acquisition would be conducted through a joint venture, in which Centurion Overseas Investment, Centurion Properties and KTM Distributions will hold 55, 40 and 5 per cent respectively.
It plans to refurbish the hotel into a 208-bed accommodation to serve students enrolled in nearby institutions. The projected capital expenditure is about KRW3.712 billion ($2.8 million).
The property is expected to start contributing to Centurion’s earnings after the refurbishiment is completed by the first quarter of next year coinciding with the new university term in March 2019.
This acquisition will bring Centurion’s total student and workers accommodation portfolio to 28 assets, and lift the total number of beds to 55,482.