Zhongyuan Investment: Investment of over 2 billion in hotel conversion to student apartments, with the bed supply target adjusted to 6,000 in the next two to three years

Centaline Group's Centaline Investment announced today (23rd) the completion of the acquisition of the Regal Oriental Hotel located in Kowloon, Hong Kong, marking an important step in Centaline Investment's strategic expansion in the Hong Kong student accommodation market. This acquisition further reflects Centaline Investment's long-term confidence in the student accommodation market, based on robust educational demand and the gradual improvement of fundamental factors in the real estate market.

The project is planned to be repositioned as a student accommodation facility and is expected to become the largest student accommodation project in Hong Kong. This project will further strengthen the development of Centaline Investment's student accommodation operating platform, CampusOne Communities.

Centaline Investment's CEO, Yip Ming-hui, stated that this acquisition reflects Centaline's confidence in the student accommodation investment market. With the structural increase in demand for student housing and asset prices currently undergoing adjustment, Centaline believes that now is the ideal time to expand its footprint in the Hong Kong student accommodation market. This investment of over HKD 2 billion by Centaline Investment in the project fully demonstrates Centaline's confidence in the market.

With the continuous increase in the number of non-local students, limited on-campus accommodation supply at local universities, and long-term market fundamentals supporting this trend, Centaline Investment announced that it will raise its target for bed supply in Hong Kong student accommodation to approximately 6,000 beds, planning to gradually achieve this over the next two to three years, significantly higher than the previous target. Currently, CampusOne Communities has a total of 3 student accommodation projects, which are expected to provide approximately 1,700 to 1,800 beds once fully operational.

Centaline Investment's Managing Director and Chief Investment Officer, Jiang Ruowen, stated that student accommodation is no longer a niche market but is gradually becoming an indispensable infrastructure for Hong Kong's international education hub and is developing into an institutional-grade asset class. Centaline is confident that through prudent acquisition strategies, scaled development, and professional operations, it can provide stable returns and long-term value for investors