Coliwoo Holdings Announces Disposal of Subsidiary and Leaseback Arrangement

Key Highlights for Investors

• Disposal of 80% Stake in Subsidiary Managing a Premium Co-Living Hotel: Coliwoo Holdings Limited has agreed to dispose of its 80% interest in Coliwoo PP Pte. Ltd., the entity managing Coliwoo Hotel Pasir Panjang at 404 Pasir Panjang Road.
• Sale and Leaseback Structure: The company will lease back the property, maintaining operational control and ensuring continuity of its co-living business at this premium site.
• Gross Proceeds and Capital Recycling: The transaction will unlock S\$43.9 million in gross proceeds, allowing Coliwoo to crystallise the property’s value, strengthen its balance sheet, and pursue higher-return opportunities.
• Minimal Immediate Profit Recognition, but Prior Fair Value Gains: The company expects to recognise a gain of approximately S\$0.3 million for FY2026, as most fair value gains have already been accounted for in prior years.
• Asset-Light Business Model Transition: The move is part of a broader capital recycling and asset-light strategy, reducing leverage and enhancing liquidity for future expansion.
• No Impact on Tenants or Operations: Tenancy agreements, amenities, and community programming remain unchanged, with Coliwoo retaining full operational control.
• Net Proceeds to Repay Debt and Fund Growth: An estimated S\$15.3 million in net proceeds is earmarked for repaying working capital loans to LHN Group Pte. Ltd. (the immediate holding company) and supporting business expansion.
• Management’s Outlook: Coliwoo expects to further unlock portfolio value over the next 18-24 months, redeploying capital into new acquisitions and sustainable growth initiatives.

Detailed Analysis

Coliwoo Holdings Limited, Singapore’s leading co-living operator, has announced a significant transaction involving the disposal of its majority stake in Coliwoo PP Pte. Ltd., the manager of Coliwoo Hotel Pasir Panjang. This asset, located at 404 Pasir Panjang Road, is a flagship premium co-living hotel property within Coliwoo’s portfolio.

Transaction Structure and Strategic Rationale

The transaction is structured as a sale and leaseback. Coliwoo will divest its 80% interest in Coliwoo PP Pte. Ltd. while simultaneously entering a long-term leaseback, allowing the company to continue operating the property and preserving its management platform and brand presence. This move enables Coliwoo to unlock S\$43.9 million in gross proceeds from the asset, capitalising on capital appreciation at an opportune time.

Importantly for shareholders, this reflects Coliwoo’s disciplined capital recycling approach. The company is shifting towards a more asset-light business model, releasing capital from mature assets and redeploying it into higher-yield ventures or new acquisitions. This should improve Coliwoo’s return on equity and capital efficiency.

Financial Impact and Use of Proceeds

Coliwoo has already recognised most of the fair value gain from the property in prior years. For FY2026, an estimated S\$0.3 million gain will be recorded, based on the carrying value as at 30 September 2025. Net proceeds from the transaction are estimated at S\$15.3 million, which will be used to repay part of the working capital loans owed to its immediate holding company, LHN Group Pte. Ltd., and for general working capital purposes. This will reduce leverage, strengthen the balance sheet, and support future growth.

Operational Continuity and Stakeholder Reassurances

Tenants, amenities, and community programming at Coliwoo Hotel Pasir Panjang will not be impacted by the transaction. The existing management team will continue to oversee all operational aspects, ensuring there is no disruption to services or tenant experience.

Management Commentary and Forward Guidance

Executive Chairman & CEO, Mr. Kelvin Lim, emphasised that this transaction is a strategic pivot, positioning Coliwoo as a more resilient and capital-efficient organisation. He highlighted that over the next 18-24 months, Coliwoo intends to unlock further value from its portfolio and redeploy capital for new acquisitions and growth initiatives. This forward guidance suggests that additional capital recycling events may occur, potentially impacting future shareholder returns and company valuation.

Company Background

Founded in 2018, Coliwoo has grown into Singapore’s leading co-living operator with nearly 3,000 rooms across the island. The company transforms underutilised real estate into modern co-living spaces, fostering community through thoughtful design and events. Besides managing its own properties, Coliwoo leases to third-party operators and provides property enhancement and management services.

Potential Share Price Impact

Shareholders should note:

• The transaction provides immediate liquidity and reduces leverage, improving the company’s balance sheet strength.
• The shift to an asset-light model could result in higher return on equity over time.
• Coliwoo’s forward guidance for further capital recycling and acquisitions may signal continued growth and financial discipline, typically viewed positively by investors.
• Minimal immediate profit recognition means the transaction’s impact is more strategic and balance sheet-oriented rather than boosting near-term earnings per share.

Contact Information

Investor Relations:
Emily Choo, Mobile: +65 97346565, Email: [email protected]
Royston Tan, Mobile: +65 97664836, Email: [email protected]
Public Relations:
W Communications, Email: [email protected]

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult professional advisors before making any investment decisions related to Coliwoo Holdings Limited.

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