Centurion Corporation

[weijian]

From 1H23 results, the borrowing profile show that only ~26mil out of 688mil borrowings denoted in RM - so there is a good chance that Centurion borrowed SGD to fund much of the Msian PBWA properties. There may probably be some realized translation losses as a result of this transaction.

But when your share price is ~0.5-0.6x NAV, value is always unlocked if one is able to sell their investment assets at NAV. They may have also gotten themselves a financially-strong local "partner" who willing to pay for the asset and have someone operate it for them. Transiting to an asset light model makes a lot of sense when low/zero interest rates may not come back for some time..

SALE AND LEASEBACK OF WESTLITE BUKIT MINYAK AND WESTLITE TAMPOI

The market value of the Properties is RM 227.0 million (approximately SGD 65.2 million)2 which was derived from a valuation report by Savills (Malaysia) Sdn Bhd, commissioned by CDSB on 16 November 2023 and is based on the Income Approach (Investment Method of Valuation) taking into account the 15-year master lease of the Properties.

The Consideration, being RM 227.0 million, was arrived at on a negotiated arm’s length basis taking into consideration the valuation of the Properties and is higher than the net tangible asset value of the Properties of RM 224.3 million (approximately SGD 64.9 million)3 as at 30 June 2023. The Consideration will be paid by KWAP to WDBMSB and WDTSB in cash. The aggregate rent payable under the Lease Agreements was also arrived at on a negotiated arm’s length basis.

https://links.sgx.com/FileOpen/CCL-Sale%...eID=779878