LHN’s co-living unit Coliwoo files preliminary document for IPO on SGX mainboard
Proceeds will be primarily used for expansion, growth and asset enhancement through the leasing and owning properties in existing and new markets
[SINGAPORE] Property management services group LHN’s co-living business Coliwoo has lodged a preliminary prospectus for a listing on the mainboard of the Singapore Exchange.
Coliwoo’s property portfolio comprises 25 properties in “high-demand locations” across Singapore. Of this, 11 are owned by the group, 10 are leased, and four are managed by the group.
It also holds a strategic 30 per cent interest in The Bus Hotel, its associated company that leases the property which operates resort hotel The Bus Collective.
The company aims to expand its portfolio to close to 4,000 rooms by the end of 2025, from 2,933 rooms currently.
By 2030, the group intends to have about 10,000 rooms in Singapore, LHN executive chairman Kelvin Lim said in an interview with The Business Times earlier this month.
“This growth will be driven by a combination of upcoming developments, master lease agreements and management contracts,” said Coliwoo in its offer document on Tuesday (Sep 30). “Through these initiatives, we aim to strengthen brand presence, and reinforce our position as Singapore’s leading co-living operator.”
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Proceeds of the initial public offering will be primarily used for the expansion, growth and asset enhancement of Coliwoo through the leasing and owning of properties in existing and new markets, it said.
A portion will go towards loan repayments and general working capital, including operating expenses such as manpower costs, marketing expenses and professional fees.
In a separate bourse filing on Tuesday evening, LHN said Coliwoo and Globalpoint Far East have signed a non-binding term sheet with an independent buyer to sell Coliwoo PP for about S$43.9 million plus its adjusted net asset value.
Coliwoo PP is an indirect wholly owned subsidiary of LHN, which holds an 80 per cent interest in it. Globalpoint Far East holds the remaining 20 per cent interest in Coliwoo PP. It was first incorporated in January 2021, and is the registered owner of Coliwoo Hotel Pasir Panjang.
Should the deal go through, Coliwoo PP will cease to be a subsidiary of LHN, which is listed on the Singapore Exchange and Hong Kong Stock Exchange. Coliwoo will then enter into a master lease agreement with the buyer for a lease back of the property for six years, it said.
In the first half of FY2025, Coliwoo recorded a revenue of S$23.1 million and net profit of S$9.3 million. Earnings per share stood at 2.99 Singapore cents, based on a pre-offering and paid-up share capital of 312.5 million shares.
Average occupancy was above 95 per cent for all properties in its portfolio.
The company’s total assets as at Mar 31 was S$408.3 million, with total liabilities of S$331.5 million. This translates to a net asset value per share to 24.17 Singapore cents.
“Our strategic growth plan targets adding at least 800 rooms on a yearly basis to our portfolio, with an aim to have close to 4,000 rooms by the end of 2026,” said Coliwoo. “To complement this expansion, we are actively exploring capital recycling strategies and moving towards an asset-light management model.”
The company believes it is well-positioned for further development and growth, given the rising demand for flexible living options in Singapore.
More institutional investors are also drawn to the sector, and the government has introduced new initiatives to help meet the increasing demand for co-living and other short-term accommodations, it said. This includes the tendering of state properties for conversion into co-living spaces or serviced apartments.
Additionally, Coliwoo said, it has a strong pipeline of upcoming co-living launches over the next two to three years, to add at least 800 rooms on a yearly basis to its portfolio.
In the near term, the company said, it will continue focusing on adaptive reuse or space optimisation by acquiring relatively older commercial buildings and shophouses, transforming them into co-living spaces, serviced apartments or hotels.
“Our company intends to explore into overseas markets at the appropriate time and when suitable opportunities arise, relying on the experience and expertise of its management team … as well as riding on the business network of our group’s key stakeholders… to source for overseas expansion opportunities,” Coliwoo added.
Shares of parent company LHN closed 0.5 per cent or S$0.005 lower at S$0.93 on Tuesday, before the news.
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