Weave Closes Japan Domestic Multi-Family Fund With Major Boost From MUFG

Rental apartment specialist and asset manager Weave Living on Thursday announced the closing of its first fund aimed at domestic investors in Japan, with the vehicle having received an anchor investment from banking giant Mitsubishi UFJ Financial Group.

MUFG’s investment into Weave Living Japan Multi-Family Domestic Vehicle 1 will drive the acquisition of 11 multi-family assets located across Tokyo and valued at JPY 20 billion ($130 million), the companies said in a release.

The commitment from Japan’s largest finance group follows the September launch of WLJMFDV 1 and last month’s news of a fresh $450 million Korean venture backed by Singapore’s GIC, bringing Weave’s assets under management across Asia Pacific $4 billion on a fully invested basis.

“Partnering with MUFG, one of Japan’s most respected financial institutions, marks a significant milestone in Weave Living’s Japanese and Asia Pacific growth strategy,” said Weave founder and CEO Sachin Doshi. “Japan is the fastest-growing and poised to become our largest market by AUM.”

Tokyo Wave

The set of 11 multi-family assets comprises 300 rental units and expands Weave’s overall Japan portfolio to JPY 90 billion ($600 million) in less than three years since entering the market.

In June, Weave and fund manager KKR revealed the acquisition of six Tokyo properties for their Japan multi-family venture. The buy came six months after the launch of the partnership with a portfolio of 11 Tokyo assets that the operator had acquired and stabilised over the preceding 12 months.

In addition, Weave announced earlier this month that it had acquired seven Tokyo properties under a forward purchase agreement which would add JPY 15 billion in gross asset value to its Japan holdings once completed.

Counting private equity major Warburg Pincus as a key investor, Weave said the latest endorsement from MUFG showcased the Hong Kong-based operator’s ability to attract high-quality, long-term institutional capital partners in multiple markets.

“Through the establishment of this fund, we are delighted to contribute to Weave Living’s continued growth for both traditional multi-family and long-stay furnished apartments,” said Hirokazu Miyazaki, managing director and head of solutions products at MUFG. “We greatly value the company’s exceptional operational capabilities and its rapid yet steady expansion within Japan’s residential sector.”

New Brand to Launch

In addition to Japan and Korea, Weave has locations in Hong Kong, Singapore and soon Australia, owning and operating a regional portfolio of more than 4,300 rental units under the Weave Studios, Weave Place, Weave Suites and Weave Residences brands.

In Japan, the platform will introduce a new line of traditional multi-family apartments — Weave Base — to address growing demand from local renters seeking high-quality, professionally managed apartments. The brand is to complement the Weave Place furnished apartment category and the Weave Residences luxury home category.

“This strategic addition to the brand portfolio underscores Weave Living’s unparalleled commitment to catering to the diverse lifestyles and needs of Japan’s most discerning renters,” the company said.

Note: this article has been updated to show that Weave’s portfolio in Asia Pacific now includes more than 4,300 units.