CapitaLand Ascott Trust to acquire Coliwoo Midtown for S$134 million

[SINGAPORE] The manager of CapitaLand Ascott Trust (Clas) on Thursday (Aug 6) said that it will acquire Coliwoo Midtown in Singapore at an agreed property value of S$134 million.

It will allow co-living operator Coliwoo to realise the value of the asset while retaining full operational control, with lease payments to be funded from operating cash flows, said Coliwoo.

This venture will move all 212 rooms in the six-storey mixed-use development from the owned to leased segment of Coliwoo’s portfolio, while operations, community programming and service delivery remain with the group’s existing management team.

Clas is acquiring the asset at a 4.1 per cent earnings before interest, taxes, depreciation and amortisation yield on an FY2025 pro forma basis, the manager noted.

The deal is expected to increase the trust’s pro forma distribution per stapled security by 2.4 per cent, and will begin contributing to its distribution income immediately upon completion.

Serena Teo, CEO of Clas’ managers, also said that it increases the trust’s living sector portfolio to 19.5 per cent of the trust’s total portfolio value.

“This will bring us closer to our medium-term target asset allocation of 25 to 30 per cent in the living sector, with the remaining in hospitality assets,” she pointed out.

Proceeds from Clas’ divestment of The Robertson House by The Crest Collection in Singapore are expected to fund the acquisition.

They will “fund working capital for (Coliwoo’s) existing projects and the continued growth of its business”, said the co-living operator.

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The transaction is set to close in the fourth quarter, when the trust will enter into a 10-year triple-net master lease with Coliwoo Midtown at that juncture.

Coliwoo Midtown commenced operations in March, and is the co-living operator’s first new property since its listing on the Singapore Exchange’s mainboard.

The mixed-use development was repurposed from a former commercial building, which the group acquired in May 2024.

Stapled securities of Clas ended 0.6 per cent or S$0.005 lower at S$0.865, while Coliwoo shares closed 1 per cent or S$0.005 at S$0.515 on Wednesday.