Centurion Corporation announced that its wholly-owned subsidiary, Centurion Dormitories Sdn. Bhd., has established a 49% associated company in Malaysia known as Oriental Amber Sdn. Bhd.

Centurion Dormitories will hold 49% interest while strategic investor Beh Pang Keat will hold 51% interest in Oriental Amber.

Oriental Amber is principally engaged in the business of providing services relating to operation and management of workers’ accommodation. The total authorised capital of Oriental Amber is RM400,000 ($155,687).

Centurion said the establishment of Oriental Amber is in line with the group’s business strategy to grow its dormitory business overseas.

Oriental Amber had on 5 June 2014 agreed to acquire a 7.6 acres freehold land held under HS(M) 463 Lot 1108, in the Mukim of Jeram Batu, Johor Bahru, Malaysia for a purchase consideration of RM11.7 million ($4.5 million) to be satisfied in cash. Centurion said the purchase consideration was arrived at on a 'willing buyer-willing seller' basis, and took into account, market value of land within that area. No valuation was carried out in respect of the land. The acquisition is expected to complete within three months from the date of the SPA.

The land is currently zoned for agricultural use and is located in Nusajaya district, one of the five flagship zones of Iskandar Malaysia and is in close proximity to several major industrial hubs. This includes Eco Setia Industrial Park, Southern Industrial and Logistics Clusters and Ascendas-UEM Integrated Tech Park.

Oriental Amber plans to convert the land to industrial use and build two workers’ dormitory of 5,000 beds each.

This location in Nusajaya region complements the group’s existing dormitories and development sites, as it allows the group to expand footprint to the growing western corridor of Johor. Nusajaya is also the upcoming regional city with numerous large scale developments, such as, Puteri Habour, Medini City and Educity.