Centurion Wins 7,000-Bed Kranji Close Dormitory Site at S$343M, Revenue Up 31%

Centurion won the Kranji Close site on Aug 5 with the highest of 10 bids at S$343 million. The 22,079 sq m plot, on a 30-year lease with a gross plot ratio of 3.0, allows for 7,000 beds and is expected to be operationally ready by the third quarter of 2028.

The group has also put in the top bid of S$221.7 million for a 2.84-hectare site at Lok Yang Way, with the outcome still pending. The government has released five dormitory sites with more than 40,200 beds for tender across 2026 and 2027.

Centurion guided for revenue of about S$190 million in H2, up some 22% year on year. It expects portfolio capacity to grow from 85,528 beds as at Jun 30 to about 94,944 beds by 2028.

Singapore accounted for S$129.8 million, or 70% of group revenue in the first half ended Jun 30, with local revenue up 31% year on year. The gain came mainly from the consolidation of Westlite Mandai, along with 5,460 beds at Westlite Toh Guan and Westlite Mandai that became operational between December 2025 and May 2026.

Group revenue rose 31% to S$184.9 million. However, net profit fell 64% to S$26.5 million from S$73.9 million a year earlier, weighed down by a wider fair-value loss on investment properties, as well as a share of losses from associated companies of S$4.2 million, reversing from a S$27.8 million share of profit a year earlier.

Net profit from core business operations, which excludes fair-value adjustments and one-off items, rose 34% year on year to S$87.7 million. The board declared an interim dividend of S$0.02 a share, unchanged from a year earlier, to be paid out on Sep 30.

Average financial occupancy at Centurion’s Singapore worker dormitories eased to 94% from 99%, as 5,460 beds added at Toh Guan and Mandai between December 2025 and May 2026 have yet to be fully taken up. Committed occupancy at the two stood at 99% and 87% respectively as at Jul 31. The group expects occupancy to improve in H2.

CEO Kong Chee Min said the group would not let its stake in Centurion Accommodation Real Estate Investment Trust (CAReit) fall below 30%. Centurion held about 38.25% of the units in CAReit as at Jun 30. “We are quite happy to keep the units. We wouldn’t sell down,” said Kong, adding that the stake was meant to keep the group focused on the specialised accommodation sector.

In Malaysia, Centurion operates 13 assets with 36,006 beds in Johor, Penang and Selangor. Revenue there rose 31% to S$12.5 million, although occupancy slipped to 73% from 83% as foreign worker quota caps weighed on demand. Shares of Centurion fell 5.9% to close at S$1.60 on Thursday.