It will sell its 80% stake in Coliwoo PP, which owns and manages Coliwoo Hotel Pasir Panjang
[SINGAPORE] Co-living operator Coliwoo has entered into a sale-and-leaseback agreement to dispose of a co-living hotel property in Pasir Panjang owned and managed by its subsidiary Coliwoo PP.
It will sell its entire 80 per cent stake in Coliwoo PP for an aggregate consideration of S$43.9 million. It will also enter a rental agreement to continue operating Coliwoo Hotel Pasir Panjang, located at 404 Pasir Panjang Road.
Coliwoo PP will cease to be a subsidiary of the company if the transaction completes.
The deal allows Coliwoo to unlock value tied up in the property while retaining operational rights through the leaseback arrangement, the company said on Thursday (Dec 18).
Coliwoo executive chairman and chief executive Kelvin Lim said the company’s management team will retain full control of operations, community programming and service delivery, such that tenants of the property will experience no disruption from the transaction.
The sale is part of Coliwoo’s transition to a more asset-light business model. It will enable the group to redeploy proceeds to strengthen its balance sheet and fund sustainable growth initiatives.
Coliwoo noted that it has already acknowledged the fair value gain from the underlying property of Coliwoo PP in previous financial years and expects to recognise an estimated gain of around S$300,000 once the transaction completes in FY2026. The sum is calculated with reference to the carrying value of Coliwoo PP as at Sep 30, 2025.
The group intends to use estimated net proceeds from the transaction, of S$15.3 million, to repay part of the working capital loans owed to its immediate holding company LHN Group and for general working capital to operate and expand its business.
This will allow Coliwoo to optimise its debt structure, strengthen its financial position and redeploy capital into projects or properties with better returns, the company said.
Lim added that it expects to unlock additional value from its portfolio over the next 18 to 24 months.
Coliwoo shares closed Thursday 1.8 per cent or S$0.01 lower at S$0.55, before the news.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
