JLL launches sale of freehold portfolio of co-living properties in Singapore

SINGAPORE, October 15, 2024 – JLL (NYSE: JLL) has launched the sale of a portfolio of three freehold co-living properties strategically located in various districts across Singapore. The portfolio has a guide price of $120 million. This rare opportunity offers investors exposure to the burgeoning co-living market in Singapore.

The three properties are located at 115 Geylang Road, 471 Balestier Road, and 404 Pasir Panjang Road respectively. The properties can be acquired individually or collectively as a portfolio. Flexible options are available for investors to acquire the properties including with or without Coliwoo management, or via the benefit of a master lease.

All three properties are newly renovated allowing immediate income generation for the incoming owners without any major capital expenditure requirements. The rejuvenated properties have enhanced space optimisation and provide greater aesthetics and functionality. Investors can also explore further value-add works to enhance the properties’ cashflow generation potential.

“With the Government’s decision to cease issuance of freehold sites, freehold properties tend to be held for generations and are rarely available for sale due to their strong wealth preservation characteristics. The freehold portfolio combines both aspects and allows for an incoming investor to acquire quality assets while gaining exposure to the continued growth of the co-living sector,” says Ervin Seow, Vice President, Investment Sales, JLL Hotels & Hospitality Group, Singapore.

The properties are strategically located, allowing them to capture demand from a wide range of demand generators including corporate offices, medical suites, and schools. Tenants are also within a stone’s throw of amenities such as shopping malls and various F&B options. Along with consistently high occupancy rates, these properties provide investors with significant footfall.

This portfolio sale highlights a growing trend in the hospitality sector where developers are adopting asset-light strategies to optimize their operations. For investors, not only does this sale offer access to income-generating assets in prime locations, but it is also backed by support from established operators.

This model balances immediate returns with potential long-term appreciation, reflecting the evolving dynamics of the hospitality investment landscape. The strategy also highlights the industry's shift towards capital efficiency and flexibility in response to changing market conditions and growth opportunities.

“Investor sentiment towards Singapore’s co-living market remains positive, driven by strong demand for flexible living spaces and the city’s growing appeal to young professionals and expatriates. Additionally, the sector has experienced strong occupancy rates, with rental rates normalizing as the market matures and stabilizes,” says Tan Ling Wei, Vice President, Investment Sales, JLL Hotels & Hospitality Group, Singapore.

JLL is marketing the portfolio through an Expression of Interest (EOI) process.