In its announcement on Dec 19, the group says that this disposal is beneficial to the group and exemplifies its capital recycling strategy – crystallising capital appreciation in mature assets at opportune moments, then redeploying the proceeds to strengthen the balance sheet
and fund sustainable growth initiatives. "By unlocking the value tied up in the property while retaining operational rights through the leaseback arrangement, the group effectively transitions towards a more asset-light business model without compromising operational
excellence," says Coliwoo in its announcement.
Recently listed co-living operator Coliwoo Holdings announced that it has entered into a sale and leaseback agreement involving the its 80% interest in its subsidiary, Coliwoo PP, which manages the Coliwoo Hotel Pasir Panjang, a co-living hotel property at 404 Pasir Panjang Road.
Under the agreement, the group will dispose of its 80% interest in Coliwoo PP. while simultaneously entering into a leaseback arrangement. This structure allows Coliwoo to continue operating the co-living hotel property, thereby maintaining its portfolio of keys under management.
