Coliwoo buys hotel strata lot at ESR BizPark @ Changi for $101 mil

The hotel strata lot comprises a hotel block with over 250 rooms and retail space at the ground floor (Picture: Coliwoo)

Coliwoo has secured an option to buy a hotel strata lot in Changi from ESR-REIT. According to filings with the Singapore Exchange, a Coliwoo subsidiary has entered into a put and call option agreement with an ESR-REIT sub-trust to purchase the leasehold estate with respect to a hotel strata lot at 2 Changi Business Park Avenue 1.

The deal has a sale consideration of $101 million, which is in line with the independent valuation of the property as at Dec 31, 2025. The deal is expected to be completed by March 31, 2026.

The hotel strata lot sits within ESR BizPark @ Changi, a business park development owned by ESR-REIT. The hotel strata lot comprises a hotel block with over 250 rooms and retail space at the ground floor that was previously operated as Park Avenue Changi Hotel. According to ESR-REIT, the hotel’s master lease agreement expired in September 2025.

Under the terms of the acquisition, Coliwoo will lease the site from ESR-REIT with a tenure commencing from the completion of the acquisition and expiring one day before the expiry of ESR-REIT’s lease with JTC Corp for ESR BizPark @ Changi. The original 30-year lease with JTC commenced on Feb 1, 2008.

Coliwoo will also have the option to renew the lease for a further 30 years, provided that the term of the lease with JTC is extended and Coliwoo pays its share of the premium payable to JTC.

Kelvin Lim, executive chairman and CEO of Coliwoo, says the proposed acquisition allows the company to expand its co-living portfolio in a location with strategic advantages, including an established corporate tenant catchment and proximity to Changi Airport. “We are actively building out our co-living portfolio with assets that demonstrate clear repositioning potential, transforming properties that are not achieving their full economic potential into specialised co-living accommodation,” he adds.

Following the completion of the deal, ESR-REIT will continue to own the business park, retail and convention centre components at ESR BizPark @ Changi, which represent about 81% of the development’s total gross floor area.

The divestment of the hotel – a non-core asset for ESR-REIT – will enable the REIT to sharpen its strategic focus while enhancing the overall quality of its portfolio, says Adrian Chui, CEO and executive director of ESR-REIT. “Importantly, the proceeds will provide us with greater financial flexibility, allowing capital to be more effectively redeployed into potentially accretive acquisitions, asset enhancement initiatives and redevelopments within our core sectors such as logistics and high-specifications industrial assets,” he continues.

The divestment is not expected to have a material impact on ESR-REIT’s net asset value and distribution per unit for the financial year ended Dec 31, 2025.