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Optimism over Cogent’s new bet on student housing

Trinity Chua Published on Fri, Sep 15, 2017 / 10:11 PM GMT+8

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(Sept 18): This past week, one of our Portfolio companies had attracted some attention over a new business venture. On Sept 7, logistics services company Cogent Holdings announced that it has been awarded a three-year lease tender by the Singapore Land Authority (SLA) to run a student hostel near Holland Village. The property is just 700m from ACS International, a popular local independent secondary school. Shares in Cogent have surged 4.4% since the announcement, closing at 83 cents on Sept 12.

Located at 362 Holland Road, the 2,318 sq m property comprises two blocks of one-storey buildings with an estimated total gross floor area of 583.4 sq m. About 60 students can stay there at a time. The lease agreement’s term can be extended for another three years upon request, says Cogent. The group’s indirect subsidiary, Cogent Realty Capital, will manage the property.

When we went to examine it, the property was vacant and had a blue padlock at its entrance. But it could well be teeming with activity soon. The Holland Village area is popular with international students because of its proximity to a variety of amenities and international schools, such as Tanglin Trust School, Nexus International School and ACS International.