Coliwoo Sells Two River Valley Serviced-Apartment Properties for S$45.8 Million and Leases Them Back
LHN group’s listed co-living unit Coliwoo Holdings is selling two freehold River Valley Road properties for a total of S$45.8 million, with a three-year leaseback so it continues operating them. The Business Times understands a third property on the same road was sold to the same buyer for S$21 million.
Total Consideration
Estimated Net Proceeds
Leaseback Term
Of Coliwoo’s Market Capitalisation
The Transaction
The properties, which operate under the Coliwoo brand, are being sold to a Singapore-incorporated company principally engaged in construction, according to a bourse filing on Thursday 1 October. On completion, the two properties will be leased back to Coliwoo (RV), an indirect wholly owned subsidiary, for three years.
The two assets are 288 River Valley Road and 298 River Valley Road, selling for S$45.8 million in total, comprising a base purchase price of S$45.5 million, with 288 River Valley Road transacting at S$31.5 million and 298 River Valley Road at S$14 million.
The Business Times understands that a third property, 268 River Valley Road, was also sold to the same buyer for S$21 million. That property is operated under a privately held Coliwoo management contract.
The three properties have a total of 73 keys, with commercial space on the first level and serviced apartments from the second to fourth levels. The largest, 268 River Valley Road, has 37 keys and a gross floor area of about 11,701 square feet. 288 River Valley Road has 23 keys and a GFA of about 8,548 sq ft, while 298 River Valley Road has 13 keys and a GFA of about 6,149 sq ft.
The deal was brokered by Cushman and Wakefield.
Why Coliwoo Is Selling
Coliwoo said the transaction will allow the group to unlock value from the two properties and recycle capital into higher-yielding growth opportunities, while strengthening its balance sheet through debt reduction. The leaseback means it continues operating both under the Coliwoo brand.
For the two properties directly held by Coliwoo, it expects estimated net proceeds of about S$18.7 million after repayment of borrowings secured on the properties, transaction-related expenses and other completion adjustments. It intends to use the proceeds for general corporate and working capital purposes, including funding existing and future projects and debt reduction.
The transaction is structured as a sale of Coliwoo’s entire shareholdings in wholly owned subsidiaries Coliwoo RV1 and Coliwoo RV2, which own 288 and 298 River Valley Road respectively.
Coliwoo will seek shareholders’ approval at an extraordinary general meeting, as the transaction is classified as a major transaction under SGX listing rules because the aggregate consideration represents 21.7 per cent of its market capitalisation.
Coliwoo had put seven freehold hospitality and living assets up for sale in March with a total guide price of S$218.5 million, as it looked to recycle capital and pay down debt. The portfolio comprised the three River Valley properties, three assets in Balestier and a standalone building in Rangoon Road.
What the Agent Says About the Sector
Sophia Lim, director of capital markets at Cushman and Wakefield, said the sale reflects the continued strength of investor interest in Singapore’s living sector, particularly for well-located and operationally established accommodation assets.
“With strong fundamentals supported by population growth, international talent inflows and sustained demand for flexible living solutions, investors continue to view the sector favourably for its income resilience and long-term growth prospects,” she said. “The River Valley precinct remains especially attractive given its proximity to the CBD, Orchard Road and key lifestyle amenities.”
Frequently Asked Questions
What exactly was sold?
288 River Valley Road at S$31.5 million and 298 River Valley Road at S$14 million, totalling S$45.8 million including a S$45.5 million base purchase price. The Business Times understands 268 River Valley Road was also sold to the same buyer for S$21 million, under a privately held Coliwoo management contract.
Will Coliwoo still run them?
Yes. On completion the two properties will be leased back to Coliwoo (RV), an indirect wholly owned subsidiary, for three years, allowing the group to continue operating them under the Coliwoo brand.
How big are the properties?
The three have 73 keys in total, with commercial space on the first level and serviced apartments from the second to fourth levels. 268 River Valley Road has 37 keys and about 11,701 sq ft GFA, 288 has 23 keys and about 8,548 sq ft, and 298 has 13 keys and about 6,149 sq ft.
Why is Coliwoo selling?
To unlock value and recycle capital into higher-yielding growth opportunities while reducing debt. It expects net proceeds of about S$18.7 million. It had put seven freehold hospitality and living assets up for sale in March at a total guide price of S$218.5 million.
Does this need shareholder approval?
Yes. The transaction is a major transaction under SGX listing rules because the aggregate consideration represents 21.7 per cent of Coliwoo’s market capitalisation, so approval will be sought at an extraordinary general meeting.
Looking at River Valley or strata property?
Freehold assets with commercial ground floors rarely trade in clusters like this, so the pricing is a useful reference point. Happy to talk through what it means for a purchase.