LHN puts three freehold co-living properties up for sale for S$120 million

THREE freehold co-living properties have been put up for sale for a guide price of S$120 million by property management services group LHN. 

The three properties are located at 115 Geylang Road, 471 Balestier Road, and 404 Pasir Panjang Road, said marketing agent JLL, which is conducting an expression of interest exercise.  

The properties can be acquired individually or collectively as a portfolio. Flexible options are available for investors to acquire the properties, including with or without Coliwoo management, or via the benefit of a master lease, JLL said on Tuesday (Oct 15). Co-living operator Coliwoo is an indirect wholly owned subsidiary of LHN. 

Ervin Seow, JLL hotels and hospitality group’s vice-president of investment sales, said: “Freehold properties tend to be held for generations, and are rarely available for sale due to their strong wealth preservation characteristics. An incoming investor (can) acquire quality assets while gaining exposure to the continued growth of the co-living sector.”

The largest of the three properties up for sale is 404 Pasir Panjang Road, which has a site area of 1,544.6 square metres (sq m) and a gross floor area (GFA) of 26,396 sq ft. The building’s ground floor is available for commercial use. LHN bought the property for S$30 million in 2021, and it is currently operating as Coliwoo Hotel Pasir Panjang. 

JLL said that the Pasir Panjang property will be offered with the flexibility of vacant possession or a master lease with Coliwoo. 

The 115 Geylang Road property occupies a site area of 305.6 sq m and has a GFA of 9,926 sq ft. It has a restaurant on the ground floor which is currently tenanted. The property was purchased by LHN in 2021 for S$13.5 million. 

The 471 Balestier Road property spans a site area of 366.1 sq m, with a total GFA of 11,925 sq ft. It is approved for retail use on the ground floor. LHN bought the site in 2021 for S$15 million, via a joint venture with mattress company Four Star. 

Both the Geylang and Balestier properties are managed by co-living operator Habyt. 

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“All three properties are newly renovated, allowing immediate income generation for the incoming owners without any major capital expenditure requirements,” JLL said.

“Investors can also explore further value-add works to enhance the properties’ cash flow generation potential,” it added.

Tan Ling Wei, senior vice-president of investment sales at JLL hotels and hospitality group, said: “Investor sentiment towards Singapore’s co-living market remains positive, driven by strong demand for flexible living spaces and the city’s growing appeal to young professionals and expatriates. Additionally, the sector has experienced strong occupancy rates, with rental rates normalising as the market matures and stabilises.”