Weave Living Puts Maiden Singapore Location on the Market for $82M

Rental apartment specialist Weave Living has put its first-ever Singapore location up for sale at a guide price of S$105 million ($82.4 million), as the Hong Kong-based platform looks to move up the value chain with help from capital partners like asset management titan BlackRock.

The 65-unit Weave Suites Midtown near Bugis MRT station opened in March 2023, one year after the rental housing operator announced a deal with Lian Beng Group’s SLB Development to acquire the row of heritage shophouses to mark Weave’s entry into the Lion City.

Founder and CEO Sachin Doshi framed the planned sale as part of a portfolio rebalancing as Weave pursues larger-scale assets in Singapore, with the divestment also aimed at capitalising on strong local interest in shophouse hospitality assets.

“We have acquired or opened three larger locations in Singapore this year and have more in the pipeline,” Doshi told Mingtiandi on Friday.

Thinking Bigger

The marketing of Weave Suites Midtown comes less than two months after the operator announced the acquisition of its fourth Singapore asset, an apartment complex in the Novena area, through a partnership with Lian Beng and a BlackRock fund.

The partners aim to create a 99-unit, full-service facility at Weave Suites Novena, with amenities including a sheltered play area for children, wellness facilities, a lap pool and a communal courtyard. The property will also provide housekeeping, on-site maintenance and security.

The buy followed the opening of Weave’s second and third locations in Singapore, a 175-unit facility on Mount Sophia near Orchard Road and a 93-building in the East Coast’s Katong area, earlier this year.

Weave had teamed with BlackRock to purchase what was then known as Citadines Mount Sophia from CapitaLand Ascott Trust in February last year for S$148 million.

Upon completion of the Novena project, Weave’s offering in Singapore will increase to around 500 units in a portfolio valued at over S$500 million, according to the company. Weave also owns and manages properties in Hong Kong, Japan and South Korea with capital partners including Warburg Pincus, KKR, LaSalle Investment Management and PGIM Real Estate.

Shophouse Interest

Located at 17-49 Jalan Sultan, Weave Suites Midtown comprises 17 adjoining two-storey conservation shophouses with mezzanine levels. It features ground-floor retail units and a dual road frontage of 90 metres (98 yards) along Jalan Sultan Road and Pahang Street, according to CBRE and Savills, the joint marketing agents for the asset.

The S$105 million guide price, translating to more than S$1.6 million ($1.3 million) per key, carries an expected yield of 3 percent, the brokers said. Foreigners and companies are eligible to purchase the property, with no additional buyer’s stamp duty or seller’s stamp duty payable.

“Boutique hotels housed within conversation shophouses have garnered significant interest, with the recent reported sales of 21 Carpenter at approximately S$100 million and Duxton Reserve at around S$80 million,” said Clemence Lee, executive director of capital markets for Singapore at CBRE. “This demand is driven by the recognition of these niche investments as trophy assets that are well-supported by strong market fundamentals.”