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I
CENTURION CORPORATION LIMITED
I
ANNUAL REPORT 2013
OUR GLOBAL OPERATIONS
2013 was a year of growth for the Group. Underpinned
by sustained strong operational performance across
the Group, we strengthened our global presence
and expanded our asset base with the acquisition
of RMIT Village in Melbourne, Australia and a
development land site in Jakarta, Indonesia. These
new acquisitions mark not only our maiden foray into
the student accommodation business (RMIT Village),
but our expansion into a new geographical territory,
Indonesia.
The Group, as at 31 December 2013, holds a portfolio
of 13 accommodation assets, of which eight are in
operation, four under planning and/or construction
and one undergoing a rezoning process. As the Group
grows from strength to strength, it has managed to
maintain a prudent approach in relation to financing
these activities. More importantly, at the heart of its
operations, the Group continues to foster its distinctive
way of managing its accommodation with care for the
well-being of its residents.
Singapore: Strong presence in an established
market
Buoyedby strong demand,our workers accommodation
in Singapore continues to experience good occupancy
levels and positive growth in rental rates. Our strong
presence in Singapore is strengthened through a 42%
increase in bed count to 19,700 beds as at FY2013 from
13,900 beds in FY2012.
Woodlands site: A strategic acquisition
The Group successfully won a land tender by Jurong
Town Corporation in September 2013 for a 9,542 sq m
site located at Woodlands Avenue 10. It has a lease
term of 30 years (with effect from 22 November 2013)
and an expected capacity of 4,100 beds. Located near
the Woodlands industrial hub, once developed, the
accommodation provides easy access for workers
from the marine and manufacturing industries located
in the northern part of Singapore. Demand for the
accommodation is expected to be strong when the
development is completed.
This was a strategic acquisition for the Group, as a 30-
year lease term for workers accommodation sites is
rarely available and allows the Group to continue to
OPERATIONS
REVIEW
grow its Accommodation Business. Planning for the
site has already commenced and the development is
expected to be completed in late 2015.
Westlite Mandai now fully operational
This asset is held under a 45% / 55% joint venture with
Lian Beng Group Ltd., and includes the development
of workers accommodation over two phases and a
141-unit ramp-up industrial building. The first phase
was completed in April 2013 adding 4,750 beds to the
Group’s Singapore portfolio. The site quickly reached
100% occupancy within three months of its completion
due to our team’s active pre-marketing efforts. The
second phase was completed in October 2013, adding
another 1,550 beds to the overall bed capacity. Westlite
Mandai is now fully operational, with an occupancy
rate of 87%, as at 31 December 2013.
The industrial building obtained its Temporary
Occupation Permit “TOP” in January 2014. The 141
units within the ramp-up industrial building were fully
sold in FY2013 and the development profits from the
sale will be recognised in FY2014.
Westlite Toh Guan upgrading works completed
As part of our asset enhancement initiative, the Group
has undertaken upgrading works throughout FY2013 to
increase Westlite Toh Guan’s bed capacity and expand
its existing recreation and commercial facilities.
The asset enhancement works were completed
in January 2014, and the site now comprises an
additional 18 storey block as well as the existing seven
Entrance of Westlite Mandai.