（Singapore, 25.09.2025）Centurion Accommodation REIT (CAREIT), a new real estate investment trust spun off from housing provider Centurion Corp., made a stellar debut, rising an impressive 11% on its first day of trading. This landmark listing isn’t just big news for Centurion; it’s a huge win for Singapore’s financial scene, signaling a potential revival for a market that has struggled in recent years.
The listing, which took place on September 25, 2025, raised an impressive S$771.1 million, making it Singapore’s second-largest IPO of the year. This single deal has supercharged the city-state’s IPO proceeds for the year to $1.4 billion, already blowing past last year’s total of just 0.88 per unit, has put a fresh spotlight on Singapore as a thriving hub for capital markets.
The success of CAREIT’s IPO is a significant moment for several reasons. For one, it’s a vote of confidence in Singapore’s economy and its efforts to make its stock market more appealing. For a while now, the market has faced challenges like low liquidity and a lack of new companies going public. This deal, which came in just shy of the year’s largest IPO by data-center owner NTT DC REIT, shows that the market is beginning to regain its footing.
Experts believe that a combination of factors is at play. According to Tan Su Shan, CEO of DBS Group Holdings, the timing is perfect. “The long pipelines are finally being put through,” she said, referring to the many companies that had been waiting for the right moment to go public. Lower interest rates have created a more favorable environment for these listings, and it’s a trend that’s being seen in other regional markets like Hong Kong as well.
Art Karoonyavanich, DBS’s global head of equity capital markets, echoes this sentiment, noting that the strong demand from both institutional and individual investors is a sign of renewed optimism. He expects this positive momentum to continue into 2026 as the interest rate environment remains favorable.
A Unique Investment Opportunity
What makes Centurion Accommodation REIT so special? It’s the first Singapore-listed REIT of its kind, with a portfolio of properties exclusively focused on student and worker accommodation. This unique “pure-play” strategy is likely a major reason for the strong investor interest. The REIT’s initial portfolio is valued at a whopping $1.8 billion and includes 14 assets: five purpose-built workers’ dormitories in Singapore and nine purpose-built student accommodations across the UK and Australia.
Ken Foong, a Bloomberg Intelligence analyst, points out that this niche focus might have been a key driver for the strong debut. Investors are always looking for new ways to diversify their portfolios and tap into growing sectors. With a projected distribution yield of 7.47% for 2026, which is higher than the industry average and more attractive than returns from government bonds, CAREIT offers a compelling option for those seeking higher returns. The REIT’s profit in the first quarter of the year was S$21.6 million, a 24% increase from the previous year, highlighting the strong financial health of its underlying assets.
The company also has a plan for future growth. It has already lined up the acquisition of a second Australian student housing asset, which will boost its portfolio valuation to $2.1 billion. This asset, called Epiisod Macquarie Park, is currently under development and promises a more premium, wellness-focused living experience for students. This forward-thinking strategy demonstrates the REIT’s commitment to long-term value for its shareholders.
The Players Behind the Scenes
The Centurion Accommodation REIT listing was managed by a consortium of major financial institutions, including DBS, UBS Group AG, United Overseas Bank Ltd., UOB-Kay Hian Holdings Ltd., and Malayan Banking Bhd. These institutions not only helped with the IPO process but also saw significant participation from cornerstone investors. In fact, 16 cornerstone investors, including major names like FIL Investment Management, abrdn Asia, and DWS Investments Australia, subscribed for 35.7% of the total units, a testament to the confidence they have in the REIT’s future.
Tony Bin, the CEO of the REIT’s manager, expressed his gratitude for the support and his belief in the company’s future. “We believe our REIT offers investors access to a high-quality portfolio of worker and student accommodation assets in three key markets, which benefit from favorable fundamentals and strong growth outlook,” he said.
This successful listing is more than just a win for Centurion; it’s a win for the entire Singapore Exchange. As Pol de Win, SGX’s head of global sales and origination, noted, “Centurion Accommodation REIT’s listing further expands the spectrum of real estate assets available in our stock market and broadens opportunities for investors.
” With CAREIT’s market value at about S$1.5 billion, Singapore now has a total of 40 publicly traded REITs and property trusts, with a combined market capitalization of around $100 billion. The future looks bright for Singapore’s equity market, and this new listing could be the first of many to come.
