LHN to spin-off and list co-living business posts growth in 3QFY2025 update

LHN' s executive chairman, executive director and group managing director says that the spin-off listing and HKEX delisting are strategic moves to streamline our operations, enhance shareholder value, and focus on our future growth trajectory.

LHN Limited has announced that it will be spinning-off and listing its co-living business Coliwoo.

The group said on Sept 10 that it had submitted its application to the Singapore Exchange (SGX) for the listing and on received a conditional eligibility from SGX  on Sept 9  for the listing of Coliwoo.

Maybank Securities has been appointed as the financial adviser. The proposed spin-off listing has also been approved at the group&rsquo s extraordinary general meeting (EGM) on Sept 9.

This follows the group' s  April 15  announcement of its intention to spin-off Coliwoo.

If successful, LHN Limited expects to retain a majority shareholding in Coliwoo, which will remain consolidated in the group&rsquo s accounts.

Alongside the group&rsquo s plans for a spin-off listing, it has also delisted from the Stock Exchange of Hong Kong (SEHK).

In its 3QFY2025 ended June 30 business update, the group says: &ldquo The rationale for the proposed delisting is that the trading volume of shares on HKEX has been low, indicating little demand from Hong Kong investors. Furthermore, maintaining the listing on HKEX incurs additional listing and compliance costs, which the Company aims to eliminate to achieve cost savings and benefit shareholders.&rdquo

3QFY2025 business update

Separately, the group had also release its 3QFY2025 business update.

The group&rsquo s Space Optimisation Business continues to be its major revenue contributor, driven by business activities from the industrial, commercial and residential properties during 3QFY2025.

As at June 30, the group manages over 330,000 sq ft under its commercial properties and over 1.8 million sq ft under its industrial properties. In 3QFY2025, the group secured the renewal of two of its existing master leases for industrial properties at Depot Lane and Woodlands Mandai Estate.

Following its expansion into climate-controlled storage services, the group&rsquo s Work+Store storage solutions business launched its second air-conditioned facility at 38 Ang Mo Kio in 3QFY2025. This development further broadens its offerings to address Singapore&rsquo s rising demand for climate-controlled storage spaces.

Meanwhile, Coliwoo&rsquo s co-living business continued to grow in 3QFY2025, with Coliwoo Hotel Kampong Glam commencing operations. The group also secured one new master lease for a state-owned property at 159 Jalan Loyang Besar, which commenced on June 1, adding 382 rooms to its portfolio. The property will be converted into a resort chalet and is scheduled to commence operations in the second quarter of calendar year 2026, corresponding to 3QFY2026.

Under its industrial & commercial facilities management (ICFM) business, 17 new contracts were secured during 3QFY2025 while nine existing contracts were successfully renewed. Newly secured and renewed contracts are mainly for the provision of air-conditioning servicing, cleaning, integrated facilities management, landscaping and pest control services. As at June 30, ICFM expanded its client base to 126, up from 115 clients the same period a year ago.

As at end June, the group manages 100 car parks in Singapore, overseeing over 27,000 parking lots within its car park management business. The group has also ceased its car park management business in Hong Kong since Apr 30.

As for the group&rsquo s energy business, it is focusing on the electricity supply and renewable energy services. Its energy segment provides electricity retailing, electric vehicle (EV) charging stations and solar power system installation, primarily for industrial clients.

During the third quarter, the group secured one solar energy contract with a capacity of approximately 0.3 MW of renewable energy, which sums up to the group&rsquo s total solar energy portfolio of approximately 9.6 MW as of June 30, 2025. Additionally, LHN and its joint venture have a total of 19 EV charging points.

Moving forward

On the outlook, the group remains cautiously optimistic about demand for both short-term and long-term rentals through 2025 and 2026. This is driven by two factors: the positive private residential rental market outlook and the &ldquo exceptionally strong&rdquo outlook doe the Singapore tourism, business travel and international education market.

To meet the growing demand for co-living properties, the group has developed a roadmap to grow its Coliwoo portfolio. The group is set to launch new Coliwoo properties in Jalan Lyang Besar and Bukit Timah Fire Station.

Meanwhile, Singapore&rsquo s industrial real estate market is expected to experience moderating rental growth for the remainder of 2025, amid cautious economic sentiment and an increase in new supply, particularly in warehouse and business park segments. While warehouse and high-tech factory rents saw moderate q-o-q increases in the 2Q2025, higher vacancy rates and a slowdown in manufacturing recovery are likely to temper further rental uplifts. However, steady take-up rates for new multi-user logistics and business park developments should provide some resilience, underpinned by robust rental growth in earlier periods

The group has in July added a new master lease for an industrial space to its portfolio. Located in Jalan Papan, the space adds 54,283 sqft for a 3-year lease term (with an option to renew) under its management.

The group commenced car park management operations at three new car parks in August 2025, with another site expected to start in October 2025. These contracts add 844 parking lots to its portfolio.

Kelvin Lim, executive chairman, executive director & group managing director of LHN says, &ldquo Our Space Optimisation segment, with its Coliwoo portfolio, has maintained high occupancy rates, and we&rsquo ve further expanded our co-living offerings with the addition of the new resort-style chalet at 159 Jalan Loyang Besar. Our facilities management business also saw solid growth, with new contract wins and existing contract renewals, while our Energy segment continues to expand its renewable energy capacity.&rdquo

&ldquo The delisting from HKEX and the proposed spin-off and separate listing of Coliwoo are strategic moves to streamline our operations, enhance shareholder value, and focus on our future growth trajectory,&rdquo he adds.

As at 11.00am, shares in Coliwoo have risen 8.15% for the day to trade at 93 cents.