Centurion Corporation Limited an SGX listed company has entered into sale and leaseback agreements with KWAP for two
assets, Westlite Bukit Minyak and Westlite Tampoi.
Westlite Bukit Minyak is a Purpose-Built Workers Accommodation on freehold land in Penang, comprising three accommodation blocks with a total bed capacity of 3,321 beds. Westlite Tampoi is a PBWA in Johor sited also on freehold land, comprising six accommodation blocks with a total bed capacity of 5,790 beds.
Under the terms of the sale and purchase agreements, the two Properties will be acquired by KWAP for a consideration of RM 227.0 million (approximately S$65.2 million). The disposal value was arrived at a negotiated arm’s length basis taking into consideration an independent valuation conducted in relation to the sale of the Properties. Upon completion of the sale and purchase agreements, Centurion through its subsidiaries will enter into lease agreements with KWAP to leaseback the Properties for a period of fifteen years.
The group said the divestment of the properties is part of the Group’s ongoing strategic rationalisation of its portfolio
assets, to recycle and redeploy capital to further grow its portfolio of assets under management. The sale and leaseback of the Properties is also aligned with the Group’s strategy, to grow its business via asset-light means.
Centurion is actively expanding its Malaysia PBWA capacity in response to the escalating demand for PBWAs or popularly recognised as Centralised Living Quarters (“CLQs”) in Malaysia.
