Shares of LHN surged 3.57% in intraday trading, as investors reacted positively to a major corporate move by its Coliwoo unit involving a prime Singapore co-living asset.
The group announced a proposed sale and leaseback of Coliwoo Midtown, a 212-room co-living property at 141 Middle Road, with the asset valued at S$134 million excluding GST. DBS Trustee, acting for CLAS Uptown Trust, will acquire the property under a put and call option structure, while LHN will lease back the building for a 10-year term, retaining full operational control.
The transaction is expected to generate an estimated gross disposal gain of approximately S$9.2 million. Net proceeds, after settling transaction costs and related debt, are earmarked for working capital and future growth projects, effectively strengthening the company’s balance sheet while shifting the property from its owned to its leased portfolio.