See more: Coliwoo buys hotel at Changi Business Park from ESR-REIT for $101 mil
According to Coliwoo management, this hotel asset offers compelling co-living conversion potential with a captive tenant base from the surrounding business district and proximity to Changi Airport. Together with its Coliwoo Resort Changi, an upcoming resort-style co-living property at 159 Jalan Loyang Besar (estimated 382 rooms are slated for launch in 3QFY2026), this puts the group firmly on track to achieve its target of adding at least 800 rooms annually, over the next three years.
Analyst Eric Ong says: "We believe this deal is in line with the group's core strategy of converting mature hotel/commercial
properties into higher-yielding and specialised co-living assets to fulfil their full economic potential."
Aside from its conversion potential, the property is located strategically in Changi Business Park and provides ready
access to an established corporate tenant pool, especially given its proximity to Changi Airport.
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This enables the property to serve multiple market segments, including transit passengers, aviation personnel, and professionals engaged in the Changi Terminal 5 construction project.
The acquisition is structured as a leasehold estate with a tenure commencing from the completion of the acquisition and expiring one day prior to the expiry of the head lease with JTC Corporation (originally 30 years commencing from Feb 1, 2008). Coliwoo aims to complete the transaction by 31 Mar 2026.
"We understand the agreement also includes an option to renew for a further 30 years, thus securing the group’s long-term presence in this strategic precinct," says Ong.
As at 2.30pm, shares in Coliwoo are trading at 60 cents, unchanged from its IPO price.
