Centurion's RM214.5m Pasir Gudang buy to be its largest in Malaysia

PETALING JAYA (Sept 9): Singapore-listed Centurion Corp Ltd has agreed to acquire a 7,974-bed purpose-built worker accommodation (PBWA) complex in Pasir Gudang, Johor, for RM214.5 million, in a deal that is expected to make it the group’s largest worker accommodation asset in Malaysia upon completion.

The acquisition will increase Centurion’s Malaysian bed capacity by 22% to 43,980 beds, from 36,006 beds across 13 PBWA assets in Johor, Penang and Selangor.

In an SGX filing on Tuesday (Sept 8), Centurion said its indirect wholly-owned subsidiary Westlite Dormitory (Cemerlang) Sdn Bhd had entered into a sale and purchase agreement with SJ Holdings Sdn Bhd, an independent third party.

The 9.73-acre property comprises two adjoining 60-year leasehold parcels at Jalan Keluli 11 in the Pasir Gudang industrial area, with the leases expiring on May 31, 2069. It has 444 apartment-style units across eight five-storey blocks, with a combined built-up area of 749,358 sq ft.

One parcel, with an approved capacity of 3,978 beds, is operating and tenanted by employers in surrounding industrial estates, including multinational food, chemicals and metals manufacturers, logistics operators and service providers.

The other parcel, with an approved capacity of 3,996 beds, was recently completed and will be progressively leased.

The property will be managed under Centurion’s Westlite Accommodation brand.

Price subject to adjustment

The RM214.5 million purchase price comprises RM109.5 million for the first parcel and RM105 million for the second. Centurion estimates a further RM20.05 million for the foreign acquisition consent fee, stamp duty and other acquisition-related costs.

The purchase price was negotiated on a willing-buyer, willing-seller basis after taking into account an indicative independent valuation by CBRE WTW Sdn Bhd.

The SPA provides for the purchase price to be adjusted if the property’s market value falls below the purchase price or if the bed count approved by the relevant authority is below an agreed minimum.

Centurion has paid a 10% deposit of RM21.45 million to the vendor’s solicitors as stakeholders, with the RM193.05 million balance payable upon completion. The acquisition and related costs will be funded through internal resources and external bank financing.

Completion is expected on or before April 7, 2027, subject to conditions including Johor state authority consent, an independent valuation and satisfactory legal and technical due diligence.

Centurion links deal to Johor industrial growth

Centurion said the property is near the manufacturing estates of Pasir Gudang and within 5km of the Tanjung Langsat heavy industry corridor.

CEO Kong Chee Min said the proposed acquisition supports the group’s expansion in Malaysia and advances its investment commitment to the Johor-Singapore Special Economic Zone.

“As more manufacturers establish operations in Johor, demand for compliant worker accommodation continues to grow,” he said.

Centurion said the proposed acquisition is not expected to have a material impact on its consolidated net tangible assets per share or earnings per share for the financial year ending Dec 31, 2026.

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