LHN to acquire River Valley assets for S$23.3 million
Michelle Zhu
LHN has entered into options to purchase a portfolio of units across two properties at River Valley Road for a total consideration of S$23.3 million, with plans to convert them into serviced residences or a hotel under the Coliwoo brand.
On Wednesday (Jul 26), the real estate services provider said that these acquisitions will expand its portfolio of properties under its residential business in Singapore.
This would increase the brand value of Coliwoo while also providing potential capital appreciation and additional opportunities to generate revenue, it added. Coliwoo’s co-living residences segment has over 1,673 keys for studio unit rentals in Singapore, including at Coliwoo Keppel.
Completion of the acquisition is expected to take place 10 weeks after the date of the options to purchase on Oct 4. LHN intends to fund the transaction through internal funding and bank borrowings.
Located at 286 and 288 River Valley Road, the assets comprise 12 units with a total land area of 388.4 square metres. All but one of the units are currently leased out, and their sale to LHN will come with their respective tenancy agreements.
Monthly rentals for the property at 286 River Valley Road range from S$1,600 to S$6,800, while tenancy agreements at the 288 asset command rentals of S$2,000 to S$8,300 a month.
Lease terms for both properties are slated to end in February 2024 at the latest.
Development of the properties post-acquisition will hinge on approval from the Urban Redevelopment Authority for the change of use of both assets to serviced apartments, or hotel uses, of more than 10 years.
Shares of LHN were trading flat at S$0.38 as at 9.30 am on Thursday.
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