Coliwoo Holdings and LHN Limited Complete S\$101 Million Hotel Acquisition at Changi Business Park Key Acquisition Boosts Expansion Strategy, Utilises IPO Proceeds, and Signals Potential Share Price Impact Summary of Key Points Completion of Major Acquisition: Coliwoo Holdings Limited, an indirect subsidiary of LHN Limited, has successfully completed the acquisition of a hotel strata lot at 2 Changi Business Park Avenue 1, Singapore 486015. Transaction Value and Funding: The total agreed purchase price for the leasehold estate is S\$101 million (excluding GST), comprising an Option Fee of S\$10.1 million (paid earlier) and a remaining purchase price of S\$90.9 million settled on 27 March 2026. Financing Structure: The acquisition was funded through a combination of bank borrowings amounting to S\$85.85 million and S\$5.05 million from Coliwoo Holdings’ IPO proceeds. Additionally, S\$5.02 million was paid as stamp duty. Impact on IPO Proceeds: The transaction significantly utilises the funds raised from Coliwoo Holdings’ recent IPO, providing an update on the remaining balance and allocations for different business purposes. No Interested Person Transaction: None of the directors, controlling shareholders, or their associates has any interest, direct or indirect, in this transaction (apart from their interests in the Company’s shares). Ongoing Disclosure: The Company will continue to provide periodic updates on further utilisation of IPO proceeds. Details of the Acquisition The acquisition was made pursuant to a Put and Call Option Agreement entered between Coliwoo Project Ace Pte. Ltd. (a wholly-owned subsidiary of Coliwoo Holdings and indirectly part of LHN Limited) and Perpetual (Asia) Limited, acting as trustee of Viva Trust. The deal was first announced on 30 January 2026, with the call option exercised on 13 March 2026. The transaction was completed on 27 March 2026, consolidating Coliwoo’s footprint in the hospitality and co-living sector in Singapore. This strategic asset is located in the well-established Changi Business Park, a prominent business district with high demand for accommodation, signalling a potentially accretive acquisition for the Group. Update on Use of IPO Proceeds Coliwoo Holdings provided a detailed breakdown of the allocation and utilisation of IPO proceeds, highlighting the financial discipline and transparency in fund management: Purpose of IPO Proceeds Amount Allocated (S\$’000) Amount Utilised (S\$’000) Balance (S\$’000) Expansion, growth, and asset enhancement of co-living business (leased properties) 40,000 4,687 35,313 Expansion, growth, and asset enhancement of co-living business (owned & joint venture properties) 34,000 24,954 9,046 Repayment of loans 12,000 6,680 5,320 General working capital purposes 10,213 5,036 5,177 Listing expenses 4,767 4,767 – Total 100,980 46,124 54,856 Notably, out of the S\$10.213 million earmarked for general working capital, S\$2.889 million was placed as a debt servicing reserve (as required for banking facilities), S\$1.697 million for manpower costs, and S\$450,000 for lease payments. Implications for Shareholders and Potential Share Price Impact Strategic Asset Acquisition: This acquisition secures a prime hospitality asset in Changi Business Park, potentially enhancing future rental income, asset value, and the Group’s competitiveness in the co-living and hospitality sectors. Effective Capital Deployment: The use of IPO proceeds for a sizable, income-generating property demonstrates management’s commitment to disciplined capital allocation, which may be viewed positively by the market and investors. Leverage and Financial Structure: The deal was financed largely through significant bank borrowings (over S\$85 million), which may have implications for the Group’s debt profile and interest coverage, and should be monitored in future earnings releases. No Related Party Concerns: The transaction was conducted at arm’s length, with no involvement of directors or controlling shareholders in their personal capacity, reducing governance risk. Ongoing Transparency: Management has committed to ongoing disclosures regarding the use of IPO proceeds, supporting good corporate governance. Overall, the completion of this acquisition is a material event for both Coliwoo Holdings Limited and LHN Limited. It marks a significant step in their strategic growth plans, and the market may view this as a positive catalyst for future earnings and share price performance. Conclusion The successful acquisition and transparent update on fund utilisation underline the Group’s focus on expanding its asset base and optimising capital raised from its IPO. Investors should continue to monitor further announcements for updates on asset performance and financial outcomes arising from this acquisition.
