SINGAPORE (EDGEPROP) - Coliwoo Holdings has announced the sale of its entire 80% stake in Coliwoo PP Pte. Ltd. (CWPPPL), which owns and operates Coliwoo Hotel Pasir Panjang, a co-living property at 404 Pasir Panjang Road.

In a Dec 18 filing to the Singapore Exchange, the company says that it, together with Globalpoint Far East, which owns the remaining 20% in CWPPPL, has entered into a sale and purchase agreement to sell their respective stakes in CWPPPL for $43.9 million, plus a variable amount based on the net asset value of the company. The buyer is a Singapore-based real estate developer that is 100% owned by an individual, Coliwoo adds.

Upon completion, CWPPPL will cease to be a subsidiary of Coliwoo Holdings and LHN Limited, with the proceeds earmarked for working capital and loan repayment, supporting the group's capital recycling strategy. Coliwoo says it will simultaneously enter into a leaseback arrangement with a six-year master lease agreement, allowing it to continue operating the co-living hotel property.

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The company expects to recognise an estimated gain of $0.3 million from the transaction. "The disposal is beneficial to the Group, allowing us to realise gains and recycle capital into projects with better returns," the board stated.