A portfolio of seven freehold hospitality and living-sector assets across River Valley, Balestier and Rangoon Road has been launched for sale with a combined guide price of $218.5 million by Coliwoo Holdings.
Marketed exclusively by Cushman & Wakefield, the portfolio — branded “The Living Collection” — is being offered via an expression of interest (EOI) exercise closing at 3pm on April 13. Investors may acquire the properties individually or as an entire portfolio.
The portfolio comprises serviced apartments, student hostels and a hotel across three established city-fringe clusters: River Valley, Balestier and Rangoon. Collectively, the seven fully operational assets comprise 253 keys and provide immediate cash flow.
According to Cushman & Wakefield, the portfolio is one of the largest living-sector offerings currently available for sale in Singapore.
River Valley cluster
The River Valley cluster includes 268, 288 and 298 River Valley Road. The trio comprises serviced apartment assets with approved commercial use on the first storey and serviced apartment units above.
The three buildings have a combined gross floor area (GFA) of about 26,398 sq ft and offer a total of 73 keys.
Individual guide prices range from $18.5 million to $35 million. Assets may be sold with vacant possession or on a sale-and-leaseback arrangement at a 3.5% gross yield, subject to terms.
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Located within the River Valley residential enclave, the properties are near Orchard Road, Robertson Quay and the Central Business District (CBD), the assets will likely attract demand from expatriates and long-stay professionals.
Balestier and Rangoon cluster
The Balestier cluster comprises 320 Balestier Road, 453 Balestier Road and 471/473 Balestier Road. The assets include two student hostels, a serviced apartment with first-storey commercial approval at 453 Balestier Road and a 49-key hotel. Individual guide prices range from $35 million to $46 million.
The properties sit near the HealthCity Novena precinct, Singapore’s largest integrated healthcare hub, and are expected to benefit from sustained accommodation demand from healthcare professionals, medical visitors and corporate tenants, say Cushman & Wakefield.
The Rangoon asset at 99 Rangoon Road is a 32-key student hostel with a guide price of $20 million. Located within walking distance of Farrer Park MRT Station, it is positioned to capture student demand from nearby institutions including Singapore Management University, LASALLE College of the Arts and Nanyang Academy of Fine Arts.
Across the Balestier and Rangoon properties, gross yields range from about 3.0% to 3.8%.
Platform opportunity for investors
Sophia Lim, director at Cushman & Wakefield, describes the portfolio as one of the largest freehold hospitality and living-sector offerings currently on the market.
“It represents a rare opportunity to acquire a diversified basket of income-producing freehold assets across prime city-fringe locations, with the added advantage of flexible acquisition structures,” she says.
Shaun Poh, executive director of capital markets at Cushman & Wakefield, adds that the clustering of assets across three precincts offers potential operational synergies and branding efficiencies.
“Beyond the immediate income stream, the clustering across established neighbourhoods provides investors with scale and asset management efficiencies. A freehold offering of this scale and quality is seldom brought to market,” he says.
Lim adds that “Singapore’s living sector has matured rapidly into a recognised, institutionally supported asset class, underpinned by strong occupancy fundamentals and shifting lifestyle preferences”. “The portfolio consistently enjoys high occupancy rates, supported by resilient demand from expatriates, healthcare professionals and international students. As co-living and alternate accommodation continue to attract institutional capital, a portfolio of this scale provides immediate stability and the potential for rental optimisation and value enhancement over time”.
Photo: Cushman & Wakefield
