The Group diversified into the Workers Accommodation Business in 2011 after their successful reverse acquisition exercise and is now one of the largest providers of workers accommodation in Singapore and Malaysia.
The Group’s Workers Accommodation Business in Singapore is presently managed under the WESTLITE brand which is one of the largest providers of workers accommodation in Singapore. The Group currently operates five workers accommodation in Singapore, namely, Westlite Toh Guan, Westlite Mandai, Westlite Woodlands, Westlite Papan and Westlite Juniper. Both Westlite Toh Guan and Westlite Woodlands are 100% owned while Westlite Mandai and Westlite Papan (both joint ventures with Lian Beng Group) are 45% and 51% owned respectively. For Westlite Juniper, the Group secured a 10-year lease, with an option to renew for another five years. This lease commenced in September 2019.
In addition, the Group was awarded with master leases of four Quick Build Dormitories (“QBD”) in 2020. Of the four QBDs, Westlite Kranji Way and Westlite Tuas Avenue 2 have commenced operations as at 31 December 2020 and are ramping up their occupancies. The remaining two QBDs are expected to commence progressively by 2Q 2021. The current five PBWAs and four QBDs have a total capacity of approximately c.30,320 beds.
The Group’s Workers Accommodation Business in Malaysia is one of the largest providers of purpose-built workers accommodation in Malaysia. As one of the pioneers in purpose-built workers accommodation in Malaysia, the Group’s workers accommodation and services are gaining recognition and acceptance by MNCs, local companies and their workers.
Centurion’s established portfolio of workers accommodation assets are managed under the WESTLITE brand. As at 30 June 2019, the Group owns a portfolio of c.30,700 beds across seven operating accommodation assets in Malaysia. In 2Q 2019, the Group has commenced development of an additional three blocks at Westlite Tampoi, Johor. This development is expected to complete in 2Q 2021, adding 3,600 more beds. In 4Q 2020, the Group secured from Perbadanan Kemajuan Negeri Selangor, also known as Selangor State Development Corporation (“PKNS”), to lease a ready-built property, located in Sungai Way, Petaling Jaya comprising approximately 6,044 beds for workers accommodation. This marks the Group’s entry into Selangor and adds to the total capacity of PBWA in Malaysia to c.36,744.
The Group has been making good progress in building its customer base in Malaysia and attracting the manufacturers to house their workers in its workers accommodation portfolio. Amongst its existing customers are reputable multinational electronic contract manufacturers and manufacturing companies who care for their workers’ well-being by putting them in proper accommodation. As part of their manufacturing requirement to meet the Electronic Industry Citizenship Coalition standards, certain companies would prefer to house their workers in proper accommodation. The Group has managed to achieve high occupancy rate for its Malaysia portfolio.