$Cent Accom REIT(8C8U.SI)$ (CAREIT) listing last Thursday marks the first pure play purpose-built worker and student accommodation REIT, providing access to two resilient segments within the living accommodation space across three markets globally.
At an initial market capitalization of S$1.51 billion and funds raised of S$771.1 million, the REIT is the second largest offering this year.
CAREIT is sponsored by Centurion Corporation Limited (CCL), a Singapore-based company specializing in purpose-built worker and student accommodation. CCL is the largest PBWA operator in Singapore, managing a S$2.6 billion portfolio across six countries with 37 assets and over 70,000 beds.
CAREIT’s initial portfolio comprises 14 assets, with five purpose-build worker accommodation (PBWA) assets located in Singapore, eight purpose-build student accommodation assets (PBSA) assets located in the United Kingdom, and one PBSA asset located in Australia, with a combined value at approximately S$1.84 billion.
Following its listing, CAREIT plans to expand by acquiring Epiisod Macquarie Park, a PBSA asset in Australia, subject to the fulfilment of certain conditions. Upon completion, the portfolio will comprise of 15 assets with an estimated total value over S$2.1 billion.
According to its prospectus, CAREIT highlights that Singapore’s PBWA segment is poised to benefit from sustained demand for foreign labour, alongside a controlled supply of housing. In parallel, the PBSA markets in the UK and Australia continue to show robust growth, supported by strong demand for higher education and limited availability of suitable student housing. Its properties are managed under the Westlite brand for PBWA and under dwell and Epiisod for PBSA.
CAREIT’s initial portfolio has a gearing ratio of 20.9 %, which is projected to increase to 31.0% following the planned acquisition. The expected Interest Coverage Ratio (ICR) is 4.6x and 4.8x for FY2026 and FY2027 respectively. Average occupancy rates from FY2022 to FY2024 are 97.9 per cent for PBWA and 94.1% for PBSA. Rental rates have shown positive growth, with a compound annual growth rate (CAGR) of 26.3% for PBWA and 11.3% for PBSA over the same period.
Based on the offer price of S$0.88 per unit, CAREIT is expected to deliver an annualized distribution yield of 7.47% for FY2026 and 8.11% for FY2027.
Other S-REITs with exposure to the PBSA sector include CDL Hospitality Trusts (CDLHT), which acquired its first PBSA asset in December 2024. This property, located in Liverpool, United Kingdom, is valued at S$67.1 million and reported an average occupancy rate of 95.0% for the first half of 2025.
CapitaLand Ascott Trust also has a notable presence in the PBSA sector, with nine assets located in the United States and Japan. Student accommodation assets account for 11% of the trust’s portfolio value.
Additionally, Elite UK REIT recently received approval to convert a property in Dundee, Scotland, into a 168-bed PBSA asset. The property is located centrally and is intended to address demand for student accommodation in the area. Completion is projected for 2027, with an estimated return on investment of 18.0%.
A recent Knight Frank report highlights a growing investor interest in living sectors, particularly PBSA and PBWA. Scarcity factors have led to competitive bidding and helped to maintain robust pricing levels.
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