Under the terms of the deal, Kwap will enjoy a rental yield of 6.5 to 7% from Centurion, which will continue to be the operator of the dorms.
RHB Bank Singapore's Alfie Yeo has kept his 'buy' call and 62 cents target price on Centurion Corp, on optimism that the dorm operator's asset-light strategy is taking shape.
On Dec 4, Centurion announced that it has signed a sale and leaseback agreement with Malaysia's public sector pension fund, Kwap, for two of its dorms for RM227 million ($65.2 million).
