Centurion Corporation

[bardsmanship]

Yep, Centurion's only student dorm in Australia is in Melbourne. Still I thought the article provided some useful information - I didn't know till I read it that Brisbane was so oversupplied, that GIC owns student dorms in Brisbane, or that Mapletree had bought student accommodation assets in the US recently.

I think Centurion's leverage is a little high for them to be investing in more assets now anyway, in Brisbane or elsewhere.

[TTTI]

Yep, Centurion's only student dorm in Australia is in Melbourne. Still I thought the article provided some useful information - I didn't know till I read it that Brisbane was so oversupplied, that GIC owns student dorms in Brisbane, or that Mapletree had bought student accommodation assets in the US recently.

I think Centurion's leverage is a little high for them to be investing in more assets now anyway, in Brisbane or elsewhere.

Yup.
It's unlikely for them to do any acquisitions, they need to focus on paying down debt...
Also, they actually don't have to do any acquisitions now, they still have 2 undeveloped "white sites", 1 in Indonesia and the other in Australia.

[bardsmanship]

Some interesting recent transactions. These haven't been updated in SGX's Company Announcements, but according to the Spiking app, non-executive director David Loh Kim Kang has purchased shares several times in Dec 2016.

23 Dec: bought 1.21m shares at $0.324
27 Dec: bought 1.01m shares at $0.325
29 Dec: bought 88k shares at $0.325
29 Dec: bought 61.6k shares at $0.325

This would explain why the price has spiked lately on high volume, to $0.34 today. Some other deep-pocketed investors must have been buying today as well (looking at you, TTTI ).

The timing is a little odd since the Tuas dorm which lease expires in April this year, is not expected to get its lease renewed... or so it was assumed. Since negotiations are supposed to end some time this month, perhaps the directors already have an inkling of what will happen.

[level13]

Some interesting recent transactions. These haven't been updated in SGX's Company Announcements, but according to the Spiking app, non-executive director David Loh Kim Kang has purchased shares several times in Dec 2016.

23 Dec: bought 1.21m shares at $0.324
27 Dec: bought 1.01m shares at $0.325
29 Dec: bought 88k shares at $0.325
29 Dec: bought 61.6k shares at $0.325

This would explain why the price has spiked lately on high volume, to $0.34 today. Some other deep-pocketed investors must have been buying today as well (looking at you, TTTI ).

The timing is a little odd since the Tuas dorm which lease expires in April this year, is not expected to get its lease renewed... or so it was assumed. Since negotiations are supposed to end some time this month, perhaps the directors already have an inkling of what will happen.

Since Mr David Loh is a Non-Executive Director, why were his purchases not announced by the company to SGX within a couple of days after the transactions?

I refer to SGX rule 703:
Rule 703(4)(a) obligates an issuer to provide timely disclosure of material information in accordance with this policy.  

However, it seems like Centurion's own website has been updated with these announcements.
Looks like some communication breakdown along the way.

[cif5000]

Some interesting recent transactions. These haven't been updated in SGX's Company Announcements, but according to the Spiking app, non-executive director David Loh Kim Kang has purchased shares several times in Dec 2016.

23 Dec: bought 1.21m shares at $0.324
27 Dec: bought 1.01m shares at $0.325
29 Dec: bought 88k shares at $0.325
29 Dec: bought 61.6k shares at $0.325

This would explain why the price has spiked lately on high volume, to $0.34 today. Some other deep-pocketed investors must have been buying today as well (looking at you, TTTI ).

The timing is a little odd since the Tuas dorm which lease expires in April this year, is not expected to get its lease renewed... or so it was assumed. Since negotiations are supposed to end some time this month, perhaps the directors already have an inkling of what will happen.

Since Mr David Loh is a Non-Executive Director, why were his purchases not announced by the company to SGX within a couple of days after the transactions?

I refer to SGX rule 703:
Rule 703(4)(a) obligates an issuer to provide timely disclosure of material information in accordance with this policy.  

However, it seems like Centurion's own website has been updated with these announcements.
Looks like some communication breakdown along the way.

On SGX announcement page, check that the search filter is on Company Name and not Security Name.

[TTTI]

Some interesting recent transactions. These haven't been updated in SGX's Company Announcements, but according to the Spiking app, non-executive director David Loh Kim Kang has purchased shares several times in Dec 2016.

23 Dec: bought 1.21m shares at $0.324
27 Dec: bought 1.01m shares at $0.325
29 Dec: bought 88k shares at $0.325
29 Dec: bought 61.6k shares at $0.325

This would explain why the price has spiked lately on high volume, to $0.34 today. Some other deep-pocketed investors must have been buying today as well (looking at you, TTTI ).

The timing is a little odd since the Tuas dorm which lease expires in April this year, is not expected to get its lease renewed... or so it was assumed. Since negotiations are supposed to end some time this month, perhaps the directors already have an inkling of what will happen.

Oh not me. As of now I don't own any Centurion
But I did do a lot of work on this and as stated on my blog, I am monitoring the company
I like their management, but they are in a tough business currently
So how do you value such a business, where the management is goid, but the near term prospects are bleak?
I'd be cautious and wait for some initial signs that things are getting better
In this way, for sure you may lose some of the upside, but I'm happy to forgo a bit of potential upside for minimal downside risk when there's no visibility

I won't place too much emphasis on the insider purchases...
A lot of the management purchased shares when it was at the mid $0.6++, then at $0.4+++
And now they're still buying.
Doesn't have any implication on their dorm site.
Still expecting lease to not be renewed
On top of that, Q4 results may come in lower than what the markets are expecting cos of 1off write down from their dorm after their appeal to URA was declined.

[weijian]

IMO, it is not easy to develop a greenfield site. If Mgt has confidence to try, and then pulls it off. It would be testimony on its prowess, i suppose.

CENTURION CORP EXPANDS PRESENCE IN AUSTRALIA WITH NEW BUILD STUDENT ACCOMMODATION IN ADELAIDE

- Proposed acquisition of a site to be developed into a quality purpose-built student accommodation (“PBSA”) which is within walking distance to two major Adelaide universities
- The 280-bed PBSA is expected to be completed for the 2019 academic year, bringing Centurion’s total number of student accommodation beds to almost 3,500

Singapore, 30 March 2017 ‒ Centurion Corporation Limited (胜捷企业有限公司) (“Centurion”) today announced that it has entered into an agreement to acquire a development site in Adelaide, Australia for A$3.5 million to be developed as a new 280-bed student accommodation. The total cost, including the cost of land, to develop the PBSA is expected to be approximately A$45.5 million (S$48.7 million1).

The freehold development site is strategically located off Rundle Street on the eastern side ofAdelaide City Centre, within walking distance to University of Adelaide and University of South Australia and in close proximity to the main Rundle Mall shopping strip.

[cyclone]

A study of Centurion’s business expansion

By: Michelle Teo
28/04/17, 03:19 pm

SINGAPORE (April 28): As GIC and Temasek Holdings make headlines for increasing their investments in international student accommodation, one local company has been steadily assembling its own student housing portfolio.

Centurion Corp, which has built a business in workers’ dormitories, is expanding its stable of student properties in Australia and the UK. And with this enlarged portfolio, it is hoping to seek a secondary listing in Hong Kong.

Recently, Centurion announced it was partnering South Australian developer Kyren Group on a new 280-bed student accommodation in Adelaide’s CBD. Centurion will acquire a 21-storey property from Kyren, which is building a mixed development on freehold land that includes a hotel and serviced apartments.

(See also: Centurion to develop 280-bed students dorm in Adelaide)

The total cost of the student accommodation, including land and development cost, is about A$45.5 million ($48 million). It is expected to be completed at the end of next year, in time for students starting the 2019 academic year at the University of Adelaide and the University of South Australia.

More details in http://www.theedgemarkets.com.sg/study-c...-expansion

[weijian]

Interesting that the intention to acquire is announced with only "potential investors" (rather than "confirmed partners" as most announcements do)

CENTURION CORP EYES MAIDEN FORAY INTO THE UNITED STATES WITH PROPOSED ACQUISITION OF FIVE STUDENT ACCOMMODATION ASSETS

- Portfolio of five student accommodation assets totalling 1,936 beds across four U.S. states will be rebranded to dwell Student Living and co-managed with an established U.S. student housing manager
- Centurion is expected to hold up to 30% interest in the proposed acquisition and will partner potential investors to take up the balance partner potential investors to take up the balance

http://infopub.sgx.com/FileOpen/CCL-Pres...eID=463543

[weijian]

Another acquisition in the pipeline for the US market. Current gearing is ~160% geared and the US acquisitions (if taking max 30% stake is ~80mil) will bring its gearing closer to ~180%. These loans are secured by mortgages and student housing demand should be relatively inelastic - sounds like a good deal to gear up aggressively via "growth by acquisitions"

PROPOSED ACQUISITION OF A NEW STUDENT ACCOMMODATION ASSET LOCATED IN THE UNITED STATES

The board of directors (“Directors”) of Centurion Corporation Limited (“Company” and together with its subsidiaries and associated companies, the “Group”) wishes to announce that its wholly-owned subsidiary, Centurion Overseas Investments (III) Pte. Ltd. (the “COI III”) has entered into an acquisition agreement (“Acquisition Agreement”) dated 8 August 2017 with College Square LLC (“Seller”) in relation to the sale and purchase of an operational student accommodation asset located in the United States (the “Yale Asset”).

The Yale Asset will form part of the Company’s proposed portfolio of operational student accommodation assets located in the United States1. The Company intends to have an interest
of up to 30% of the Yale Asset (a “30% Interest”), and accordingly intends to procure third parties (the “Potential Investors”) to acquire the remaining interests.

Yale asset acqusition: http://infopub.sgx.com/FileOpen/CCL-Prop...eID=466223
1H17 results: http://infopub.sgx.com/FileOpen/CCL-2Q20...eID=465950
1H17 presentation: http://infopub.sgx.com/FileOpen/CCL-2Q20...eID=465952