LHN Ltd, a Singapore-based real estate management group, is preparing to spin off its co-living brand, Coliwoo, in a move expected to unlock significant value and drive growth, said a CGS International report.
The company projects Coliwoo’s profit before tax (PBT) to increase by 20% in FY26 and 29% in FY27, as new projects come to fruition. This strategic decision aims to capitalise on Coliwoo’s rapid expansion, which has seen its portfolio grow to 2,595 keys as of March 2025, with plans to double this by FY27.
The potential spin-off and initial public offering (IPO) of Coliwoo are seen as key catalysts for LHN, allowing the company to reinvest proceeds into shareholder returns and new investments. The completion of major projects, such as Coliwoo Bugis and Coliwoo Resort Chalet, is expected to contribute significantly to revenue growth, with an anticipated 20% increase in FY26.
Beyond Coliwoo, LHN is focusing on its property development and industrial segments as future growth engines. The company recently recorded its first revenue from property development, with $8.8m (S$12m) from the sale of industrial units at LHN Food Chain. LHN’s industrial assets, which boast a 60% PBT margin, are expected to remain a key focus post-spin-off.
LHN has initiated coverage with an “Add” call and a target price of $0.73 (S$1.00), based on a 10x CY26 forecast price-to-earnings ratio. The company currently trades at a 6.1x CY26 forecast P/E, with potential re-rating catalysts including the successful Coliwoo listing and further industrial asset acquisitions.
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