CapitaLand Ascott Trust (CLAS) has announced its acquisition of Coliwoo Midtown in Singapore for S$134 million, marking a strategic move to enhance its living sector portfolio. The acquisition, set to complete in Q4 2026, is part of CLAS's portfolio reconstitution strategy, funded by the divestment of The Robertson House by The Crest Collection. This transaction promises a 4.1% EBITDA yield, significantly higher than the 2.3% yield from the divested asset.
The acquisition is expected to increase CLAS's pro forma Distribution per Stapled Security (DPS) by 2.4%, contributing to the trust's distribution income immediately upon completion. A 10-year triple-net master lease with Coliwoo Midtown Pte. Ltd. will follow, offering fixed rent with annual indexation, ensuring stable income for CLAS.
Serena Teo, CEO of CapitaLand Ascott Trust Management Limited, stated, “This yield-accretive acquisition demonstrates strong execution of CLAS’s portfolio reconstitution strategy and commitment to deliver stable DPS.” She highlighted the strategic recycling of capital into a higher-yielding asset, increasing the living sector portfolio to 19.5% of CLAS's total portfolio value.
Coliwoo Midtown, located in a prime area of Singapore, benefits from the country's robust education ecosystem and demand from professionals. The property, newly refurbished, boasts an average occupancy rate of nearly 90% as of July 2026. The potential to extend the leasehold from 51 to 99 years further enhances its long-term value, subject to approval
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