Coliwoo proposes $45.8m sale, leaseback of River Valley properties

Deal covers 50 co-living rooms across the two properties.

Coliwoo Holdings Limited has proposed the sale and leaseback of two co-living properties at 298 River Valley Road and 288 River Valley Road for an aggregate consideration of $45.8m.

The Singapore-listed co-living operator said it entered into two put and call option agreements on 30 September 2026 with Qing Feng Construction Pte Ltd to sell its entire shareholding in Coliwoo RV1 Pte. Ltd. and Coliwoo RV2 Pte. Ltd., which wholly own the properties.

Following completion, Coliwoo will lease the properties back for three years and continue operating all 50 rooms under the Coliwoo brand. The company said this will allow it to retain operational control and maintain business continuity.

The transaction is subject to completion conditions, including shareholders’ approval at an extraordinary general meeting and relevant regulatory approvals. Completion is expected in the financial year ending 30 September 2027.

The properties are freehold shophouses that Coliwoo acquired and converted into co-living spaces, with 13 rooms at 298 River Valley Road and 37 rooms at 288 River Valley Road, alongside street-level commercial units.

Coliwoo acquired 298 River Valley Road in April 2022, while it acquired 286 and 288 River Valley Road in October 2023. The latter two properties have since been amalgamated as 288 River Valley Road.

The proposed sale and leaseback forms part of Coliwoo’s capital recycling programme, following the sale and leaseback of Coliwoo Hotel Pasir Panjang in January 2026 and Coliwoo Midtown, which was completed on 30 September 2026.

The company said the transaction will allow it to unlock capital from stabilised assets and redeploy funds into higher-yielding growth opportunities.

The S$45.8m consideration was negotiated on an arm’s-length, willing-buyer, willing-seller basis, taking into account the independent valuation of the properties, the net assets of the target companies, debt to be settled at completion and the leaseback terms.

After repaying borrowings on the properties and settling transaction expenses and other completion adjustments, Coliwoo expects to receive net cash proceeds of approximately S$18.7m.

The company plans to use the proceeds for general corporate and working capital purposes, including funding existing and future projects and reducing debt.

Although the consideration exceeds Coliwoo’s original acquisition cost and related acquisition expenses, the transaction is expected to result in a non-cash accounting fair value loss in FY2026.

This is because the $45.8m consideration is below the carrying value of the properties as at 31 March 2026, which includes fair value gains recognised in prior periods.

Coliwoo said the illustrative reduction in net tangible assets and earnings per share disclosed in its announcement is primarily attributable to the non-cash accounting adjustment and transaction-related expenses.

The company expects the proposed sale and leaseback to strengthen its balance sheet and provide additional capital for future growth opportunities.