Centurion Corp Acquires Benikea Hotel for SGD16.55 Million in Seoul, South Korea

Singapore-based owner-operator of accommodation assets, Centurion Corporation Limited (“Centurion”) has announced its acquisition of the 104-key Benikea Hotel for approximately SGD16.55 million, marking its debut into the North Asia market. The acquisition will be through a joint venture, whereby Centurion Overseas Investments Pte. Ltd. (“Centurion Overseas”), a wholly-owned subsidiary of Centurion Global (“Centurion Global”) will own a 55 per cent interest in the property. The remaining interest will be owned by Centurion Properties (“Centurion Properties”)(40%) and Korea-based KTM Distribution Corporation Limited (“KTM”)(5%). Located in the Dongdaemun district within Seoul and 150 metres from Hoegi Station, the freehold property offers convenient access to key attractions and is within walking distance to four reputable education institutions. Benikea Hotel will be converted from a midscale hotel into a 208-bed student accommodation, offering twin rooms and communal areas with a projected capital expenditure of SGD4.55 million. The refurbishment is expected to be completed by the first quarter of 2019. This acquisition will bring Centurion’s operational accommodation portfolio to 28 assets, comprising of approximately 55,500 beds.

Educrest Invests in Infinity Capital Group Limited

Malaysian-based holding company Educrest Sdn Bhd (“Educrest”) announced that Educrest’s associate company has invested an undisclosed amount in the Hong Kong-based development company Infinity Capital Group Limited (“Infinity”), taking up to 40% of Infinity’s senior note placement. Infinity, specializing in luxurious high-end residences, is now developing several projects under their TELLUS brand in Niseko, Japan. The brand is composed of a boutique hotel condominium with a Michelin restaurant, private onsen and basement private wine cellar; a 17-villa community with unobstructed view to Mount Yotei and private onsen; a self-contained world-class resort with three tower residences, offering luxury spa, retail service and a Michelin restaurant. TELLUS aims to cater the growth market in Niseko, where the tourism market has been booming in recent years with year-on-year growth of 17% and 5-year compound annual growth rate (CAGR) of 16%. Educrest, who owns properties, schools, and universities across Asia, sees significant potential in this market and Infinity’s Tellus project meets a growing need for Southeast Asian and North Asian families seeking new winter and summer destinations in pristine environments.

Langkawi International Airport Expansion Increases its Capacity to 4 Million Passengers per Annum

Malaysia Airports Holdings Bhd ("MAHB") has completed its year-long expansion project of Langkawi International Airport (LGK) which has increased the airport’s capacity from 1.5 million passengers per annum to 4 million. It also includes a total gross floor area (GFA) increase from 15,000 m2 to 23,000 m2, six more check-in counters, three added boarding gates, four additional immigration counters, and an In-Line Hold Baggage Handling System – an automated system with three levels of security screening, allowing for a more efficient check-in process. Under a national airports authority five-year programme, LGK is eligible for a MYR50,000 grant, until 2020, to offer marketing support to airline operators. To attract new operators, airports can provide incentives such as reduced landing fees, complimentary office space, and financial support for online promotions and advertisements. At present, 238 flights operate from LGK per week, by six airlines flying to four domestic destinations and five international destinations.

Joint Venture Between Penang Port and Royal Caribbean to Redevelop Swettenham Pier

Penang Port and RCL Development Holdings, a wholly-owned subsidiary of Royal Caribbean Cruises (“RCL”), has entered into a joint venture to redevelop Swettenham Pier Cruise Terminal in Penang. The project includes the extension of its existing 400m berth by 220m with an additional 118m dolphin. The cruise terminal would then be able to accommodate two mega sized cruise ships, carrying up to 4,900 passengers each, simultaneously on the outer berths along with one small and one medium sized ship on the inner berths by end 2019. In addition, the expansion will enable RCL’s Oasis-Class ships, the largest in the world, to berth at the terminal. This joint venture is expected to deliver a significant increase in international transit calls at Swettenham Pier as well as an increase in appeal for Georgetown, a UNESCO World Heritage Site located 200m from the pier. In the previously signed Heads of Agreement in March 2017, the upgrade was said to cost US$35 million. No new details have been disclosed but construction is set to begin before the end of 2018.

InterContinental Brand Debuts in Hefei, China

UK-based InterContinental Hotels Group (“IHG”) recently announced its entry into Hefei City of Anhui Province, China. Strategically located at the heart of the Xicheng District, InterContinental Hefei stands close to Hefei Olympic Sports Center, Hefei Theater and the Swan Lake. The 405-key luxury hotel is approximately four kilometres away from Anhui International Convention and Exhibition Center, a 15-minute drive from Hefei South Railway Station and a 45-minute drive from Hefei Xinqiao International Airport. InterContinental Hefei offers an extensive function space of more than 3,500m2, including seven well-equipped meeting rooms, a pillar-less 2,000m2 Grand Ballroom and a 750m2 Bally’s Ballroom. Dining outlets at the hotel comprises of the Club InterContinental, a Chinese restaurant with 14 private dining rooms, the Fragrance Restaurant & Bar, a lakeside all-day dining restaurant and a lobby lounge. Other leisure facilities include a fitness centre, an indoor heated swimming pool and a spa. 

Absolute Share Price Performance, as on 14 September 2018