Coliwoo Holdings Limited Announces S\$101 Million Hotel Acquisition at Changi Business Park
Coliwoo Holdings Limited Announces S\$101 Million Hotel Acquisition at Changi Business Park
Introduction
Coliwoo Holdings Limited (“Coliwoo” or “the Company”), a leading operator in Singapore’s co-living space sector, has announced a major strategic acquisition through its wholly-owned subsidiary, Coliwoo Project Ace Pte Ltd (“the Purchaser”). On 30 January 2026, the Purchaser entered into a put and call option agreement with Perpetual (Asia) Limited, acting as trustee of Viva Trust (“the Vendor”), for the acquisition of a prominent hotel property and associated retail units located at 2 Changi Business Park Avenue 1, Singapore 486015. This property, part of the ESR BizPark @ Changi, comprises over 250 hotel rooms and ground-floor retail space.
Key Terms of the Acquisition
- Purchase Price: S\$101,000,000 (excluding GST)
- Payment Structure:
- Option Fee: 10% of the purchase price (S\$10.1 million), payable upon execution and funded from IPO proceeds.
- Balance: 90% of the purchase price, payable with GST on completion, subject to adjustment.
- Lease Structure: The acquisition is via a registered lease from the Vendor, aligning with the expiry of the ESR BizPark @ Changi lease with JTC Corporation (30 years from 1 February 2008, i.e., ending 31 January 2038). There is an option to renew for another 30 years, contingent on extension and premium payment to JTC.
- Long Stop Date: 31 March 2026, or as mutually agreed.
- Vacant Possession: Vendor will deliver vacant possession of parts of the property not subject to existing occupation agreements.
- Completion Conditions: Includes satisfactory written agreement from JTC Corporation if required.
Strategic Rationale
The acquisition aligns with Coliwoo’s ongoing strategy to expand and enhance its portfolio of co-living properties. The Group specializes in acquiring underutilized assets and transforming them into modern co-living spaces, managed under the Coliwoo brand or leased to third-party operators. This property’s location, size, and existing hotel infrastructure present significant upside for conversion, management, or further asset enhancement.
Financial Impact and Use of Proceeds
Shareholder Considerations and Price Sensitivity
- Potential Upside: The acquisition is a significant portfolio expansion, giving Coliwoo a foothold in a strategic business district and the opportunity to leverage existing hotel assets for conversion or enhanced management.
- Execution Risk: The transaction is subject to regulatory and third-party consents, notably from JTC Corporation. Any delays or adverse outcomes may affect completion.
- No Director/Shareholder Interest: The Board confirms that no director or substantial shareholder has any direct or indirect interest in the acquisition, other than through their shareholding in Coliwoo.
- Price Sensitivity: Large strategic acquisitions such as this have the potential to affect share price, especially in light of Coliwoo’s rapid portfolio growth and use of IPO proceeds. Further announcements may have additional material impact.
Further Announcements and Document Access
Coliwoo will provide further updates on material developments related to this acquisition. Investors and stakeholders may inspect the Put and Call Option Agreement at the company’s registered office for three months from the announcement date.
Conclusion
This S\$101 million acquisition signals Coliwoo’s continued commitment to growth in Singapore’s co-living sector and prudent capital management following its IPO. Investors should monitor further updates, as completion and integration of this asset could have significant strategic and financial implications.
Disclaimer: This article is provided for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Investors should perform independent due diligence and consult with professional advisers before making investment decisions.
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