Ipo Centurion Accommodation Reit 166 Times Subscribed
The demand for condos in Singapore remains strong, and it’s largely due to the limited supply of land. Being a small island nation with a quickly expanding population, Singapore grapples with a shortage of land for development. As a result, the government has enforced strict land use policies, creating a competitive real estate market where property prices consistently rise. As a result, investing in real estate, especially condos, has become a highly profitable opportunity with the potential for significant capital appreciation. For more information on Singapore’s real estate projects, visit Singapore Projects.
The initial public offering (IPO) of Centurion Accommodation REIT (CAREIT) has been met with overwhelming response, with a total subscription rate of 16.6 times. The IPO raised a total of $771.1 million, with 262,160,900 units sold. Of these, 13.2 million units were sold to retail investors. The IPO was priced at $0.88 each, projecting a distribution yield of 7.47% for 2026 and 8.11% for 2027.
The international placement tranche comprised 248,960,900 units offered to investors outside of the United States, while the remaining 13,200,000 units were made available to the public in Singapore. An overallotment option of up to 51,137,000 units may also be exercised, subject to demand.
The placement tranche received a subscription rate of 16 times, while the public offer saw a subscription rate of 30.9 times. This resulted in the total offering of 262,160,900 units being 16.6 times subscribed.
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David Loh, joint chairman of Centurion Corporation, and Han Seng Juan have acquired 10 million units and 6 million units, respectively, in CAREIT. Other individuals, including Christine Loh, Daphne Loh, Hong Wen Yee, Loh Loy Ming, and Ivy Loh, who are immediate family members of David Loh, have also acquired a few thousand units each.
In the event that the overallotment option is fully exercised, David Loh’s and Han Seng Juan’s stakes in CAREIT will amount to 746,317,100 units each. The REIT has also secured 16 cornerstone investors, who have subscribed for a total of 614 million units, equivalent to 35.7% of the total units.
The cornerstone investors include reputable names such as FIL Investment Management (Hong Kong), abrdn Asia, Amova Asset Management Asia, Asdew Acquisitions, B&I Capital, Barings Singapore, Cohen & Steers Asia, DBS Bank, and DWS Investments Australia, among others. Ong Pang Aik, chairman of previously listed Lian Beng Group, is also a cornerstone investor.
“The overwhelming subscription rate from cornerstone, institutional, and retail investors is a clear indication of their confidence in our vision to provide investors with access to a high-quality, resilient portfolio that generates stable cash flows,” says Tony Bin, CEO of the REIT’s manager.
He adds, “Our sponsor’s extensive experience in investing, developing, owning, and managing specialised accommodation assets in the local market will undoubtedly benefit the REIT and enable us to grow and enhance our portfolio.”
The units in CAREIT are expected to start trading on 25 September at 2pm.