CapitaLand Ascott Trust (CLAS) has agreed to acquire Coliwoo Midtown, a co-living property in Singapore, for S$134 million (approximately US$100 million). The deal, expected to close in the fourth quarter of 2026, is part of the trust's ongoing portfolio reconstitution strategy and will be funded by the divestment of The Robertson House by The Crest Collection.
The acquisition is yield-accretive, with an expected EBITDA yield of 4.1%—significantly higher than the 2.3% yield generated by the divested asset. CLAS projects a 2.4% increase in pro forma Distribution per Stapled Security (DPS), and the property will contribute to distribution income immediately upon completion.
Stable income through master lease
Following the acquisition, CLAS will enter into a 10-year triple-net master lease with Coliwoo Midtown Pte. Ltd., featuring fixed rent with annual indexation. This structure ensures predictable, stable cash flows for the trust, aligning with its commitment to deliver consistent distributions to stapled security holders.
Serena Teo, CEO of CapitaLand Ascott Trust Management Limited, said: “This yield-accretive acquisition demonstrates strong execution of CLAS’s portfolio reconstitution strategy and commitment to deliver stable DPS.” She added that the strategic recycling of capital into a higher-yielding asset increases the living sector portfolio to 19.5% of CLAS's total portfolio value.
Prime location and strong occupancy
Coliwoo Midtown is situated in a prime area of Singapore, benefiting from the country's robust education ecosystem and steady demand from professionals. The property has been newly refurbished and reported an average occupancy rate of nearly 90% as of July 2026. Additionally, there is potential to extend the leasehold from 51 to 99 years, subject to approval, which would enhance its long-term value.
The acquisition underscores CLAS's strategy of actively managing its portfolio to optimize returns. Earlier this year, the trust reported a steady DPS of 2.53 cents for the first half of 2026, reflecting its resilience in a competitive hospitality market. The trust has also been expanding its presence in Vietnam, with Ascott signing nine properties there, adding 3,200 units.
For travel industry professionals, this move highlights the growing importance of co-living and flexible accommodation segments within the broader hospitality landscape. As corporate travel and extended-stay demand continue to evolve, assets like Coliwoo Midtown offer stable income streams and align with shifting traveler preferences.
The transaction is expected to close in Q4 2026, subject to customary conditions. CLAS continues to evaluate opportunities to recycle capital into higher-yielding assets, reinforcing its position as a leading hospitality trust in Asia Pacific.
