LHN’s co-living spinoff Coliwoo eyes sale of 7 freehold assets for S$218.5 million

[SINGAPORE] Coliwoo on Thursday (Mar 5) launched a portfolio of seven freehold living-sector assets for S$218.5 million.

Located across three city-fringe precincts – River Valley, Balestier and Rangoon Road – the portfolio consists of commercial units, serviced apartments, a hotel and student hostels.

The company is offering the option to purchase the assets individually, or acquire the entire portfolio.

Buyers can opt for either vacant possession of the assets, or a sale-and-leaseback arrangement at a 3.5 per cent gross yield with the company.

The expression of interest exercise closes on Apr 13 at 3 pm.

The commercial units and serviced apartments sit at 268, 288 and 298 River Valley Road. Their site areas stand at about 8,548 sq ft, 11,701 sq ft and 6,149 sq ft, respectively.

The guide prices for these properties stand at S$25 million, S$35 million and S$18.5 million, correspondingly.

The River Valley Road assets are near Robertson Quay and the Central Business District, and aim to attract expatriates and long-stay professionals.

A mix of a student hostel, hotel, and commercial units and serviced apartments comprise the Balestier cluster, with a gross floor area of 18,309 square feet, 11,609 sq ft and 20,089 sq ft, respectively. They are located next to HealthCity Novena.

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The hostel at 320 Balestier Road has a guide price of S$39 million, and the hotel at 471/473 Balestier Road’s price is S$35 million. The commercial units and serviced apartments at 453 Balestier Road have a guide price of S$46 million.

The property at 99 Rangoon Road is a student hostel with a guide price of S$20 million, and is around 9,760 sq ft.

It is within walking distance of Farrer Park MRT Station and near educational institutions such as Singapore Management University and Lasalle College of the Arts – thereby “well-positioned” to capture stable student accommodation demand, indicated the statement.

The seven properties are also fully operational and generate immediate cash flow for investors. Cushman & Wakefield is the exclusive marketing agent for this portfolio.

Sophia Lim, director at Cushman & Wakefield, said the portfolio has consistently “high occupancy rates”, supported by resilient demand from expatriates, healthcare professionals and international students.

“As co-living and alternate accommodation continue to attract institutional capital, a portfolio of this scale provides immediate stability, and the potential for rental optimisation and value enhancement over time,” she added.

The co-living operator posted a net profit of S$5.7 million for the second half ended Sep 30, a 75.1 per cent decline from S$22.9 million in the year-ago period.

Its revenue stood at S$23.7 million, 26.8 per cent lower than the S$32.3 million in H2 FY2024.

These results come after it listed on the Singapore Exchange in November last year. It had 5.3 million public offer shares, which were around 20.7 times subscribed.