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Singapore: Coliving operator Coliwoo has entered into a sale-and-leaseback agreement to dispose of its Pasir Panjang property, owned and managed by subsidiary Coliwoo PP.
As part of the agreement, Coliwoo will dispose 80 per cent of its interest in Coliwoo PP for S$43.9 million while retaining operational rights of the property via the leaseback.
The transaction will unlock estimated net proceeds of S$15.3 million, which will repay part of the working capital loans and support operations.
Coliwoo executive chairman and CEO, Kelvin Lim, said: “This sale-and-leaseback transaction exemplifies our disciplined approach to capital management. By crystallising the value embedded in our mature assets while retaining operational control, we achieve a strategic trifecta: unlocking liquidity, reducing leverage, and maintaining our operational footprint.
“This is a strategic pivot towards building a more resilient, capital-efficient business model. More importantly, our tenants experience zero disruption from this transaction, as our management team retains full control of operations, community programming, and service delivery.
“This is part of our continuous capital recycling initiatives. Over the next 18-24 months, we expect to unlock additional value from our portfolio, further strengthen our balance sheet, and redeploy capital into new acquisitions and growth initiatives that will drive sustainable long-term value creation,” Lim added.
Highlights:
- Coliving operator Coliwoo has entered a sale-and-leaseback agreement for its Pasir Panjang property through subsidiary Coliwoo PP.
- Coliwoo will dispose of 80 per cent of its interest in Coliwoo PP for S$43.9 million while retaining operational control via the leaseback.
- The transaction is expected to unlock net proceeds of approximately S$15.3 million to repay working capital loans and support operations.
