LHN Launches Flagship Co-Living Complex Along Singapore’s Orchard Road

 

Coliwoo has launched a 411-unit shared accommodation facility near the city-state’s swanky Orchard Road, as the co-living unit of Singapore-listed LHN Group continues its expansion streak after Singapore residential rents jumped by nearly a third over the past 12 months.

Situated at 2 Mount Elizabeth Link near Orchard and Somerset MRT stations, the company’s flagship Coliwoo Orchard property marks the eighth location LHN has opened under its Coliwoo brand since the start of 2022 and its second largest to date, after the 437-key Coliwoo Boon Lay branch in Jurong West.

“The launch of Coliwoo Orchard represents a landmark point for Coliwoo and LHN Group, as this will be our most iconic location yet,” Kelvin Lim, executive chairman, executive Director & Group Managing Director of LHN Group, said in a statement on Monday. “The property will be Coliwoo’s flagship space and is the culmination of our expertise in the areas of co-living, space-optimisation and sustainability.”

Coliwoo’s launch of its flagship location at 2 Mount Elizabeth Link comes after an independent survey showed that residential rental rates in January were up by an average of 33.2 percent from the same period one year ago, as the Southeast Asian financial hub continues to attract the region’s wealthiest people and pull in global talent.

Former Frasers Residence Converted

The 22-storey property includes shared amenities popular in co-living strategies such as a swimming pool, separate children’s pool, jacuzzi, co-working lounge, gymnasium and BBQ pit.

However, the units in the 104,400 square foot (9,697 square metre) project are more in line with the demands of corporate executives in the Orchard area, with the rooms equipped with kitchenette, washer-dryer and en-suite bathrooms.

Coliwoo has also incorporated sustainability elements into the project with solar panels installed on the roof and on-site electric vehicle charging stations on the way.

The property is right across from Mount Elizabeth hospital and sits within the same block as the Elizabeth Towers and Cairnhill Plaza condo complexes. Nearby malls include the upscale Paragon Shopping Centre and ION Orchard while the property is within 10 minutes’ walk of the central business district.

Formerly known as the Fraser Residence Singapore, LHN renovated 2 Mount Elizabeth Link after securing a three-year lease agreement with Eastern Realty, a wholly owned subsidiary of financial services giant Oversea-Chinese Banking Corp (OCBC) in late 2021. LHN’s tenancy, set to renew on 30 November 2024, is recognised as a right-of-use asset valued at around S$11.3 million (now $8.38 million).

In September 2019, local media reported that OCBC was attempting to sell the property at an  indicative price of S$2,500 per square foot or S$261 million as the lease with Frasers Hospitality neared its expiration. The banking giant later withdrew the tender despite attracting a number of bids above its asking price, according to an account in the Business Times.

Coliwoo Expands

Following the Orchard launch and with three more projects in the pipeline, Coliwoo is expected to be managing about 2,500 keys across its serviced residence and hotel assets by the end of the year.

The company is expanding its rental housing business after rents of private homes jumped by 29.7 percent in 2022 from the previous year, or nearly three times as fast as the 9.9 percent annual increase seen in 2021, based on data from the Urban Redevelopment Authority.

LHN earlier this month agreed to pay S$80 million to purchase the GSM Building in Rochor district with plans to convert the commercial building into another Coliwoo branch.

That acquisition came shortly after the company made back-to-back buys late last year with its S$30 million purchase of 54-key Pasir Panjang Inn near the National University of Singapore followed by its pick-up of the Kampong @ Arab Street hostel in Bugis district.

LHN completed its Pasir Panjang and Arab Street deals in mid-November and December, respectively. Also set to launch this year is its co-living residence at 298 River Valley.

“This year is set to be one of Coliwoo’s finest. This latest launch of our iconic Orchard property combined with the acquisition and steady progress on multiple property projects ensures this for 2023 and the many years to come,” Lim said.

The company opened a total of seven locations under its Coliwoo brand last year, including two adjacent hotels along Amber Road in Katong, and one co-living facility each in Bugis, Balestier and Geylang, as well as two accommodations along Serangoon Road.