ACCOMMODATION assets operator Centurion Corporation’s indirect wholly owned subsidiary, Centurion China Investments, will set up two joint venture companies with Xiamen City Home Apartment Management.
The companies will retrofit, renovate and/or manage and operate Build-To-Rent residential accommodation in Xiamen, China for working professionals.
This marks Centurion’s first foray into the Build-To-Rent accommodation market in China, said the group on Monday (Sep 9).
Centurion China Investments will hold a 51 per cent equity stake in the joint venture companies, while City Home will own 49 per cent.
As of Monday, both parties have identified two projects comprising about 1,500 apartments located in the Huli district in central Xiamen.
The first project is made up of five blocks of a newly constructed residential development, which will be transformed into 1,000 apartments catering to fresh graduates and working professionals in the city.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Meanwhile, the second project includes one block of a newly constructed residential development, and will be retrofitted into 500 apartments.
The joint venture companies will enter into master lease agreements of 20 years with the property owners for both projects, said Centurion.
The group added that City Home has specialised in operating housing leasing and commercial complex management services, among others, in Xiamen since 2018. It currently operates 14,000 Build-To-Rent apartments across three cities in the Fujian province.
“The company’s cooperation with City Home…is in the ordinary course of business of the group and in line with the group’s strategy to grow its accommodation business globally, via asset light means,” said Centurion.
In July, Centurion’s joint venture leased 50 residential flats in a property in Hong Kong from Abercorn Investments, and plans to renovate these units into accommodation for workers.
The flats, to offer a total of 550 beds, are expected to be ready for occupation in October.
Shares of Centurion were trading down 2.8 per cent or S$0.02 at S$0.685 as at 1.06 pm on Monday.
