Weave Living Launches Japan Multi-Family Fund With 11 Assets Valued at $135M

Rental apartment specialist and asset manager Weave Living has announced the launch of its first fund aimed at domestic investors in Japan, with the vehicle having acquired a portfolio of 11 Tokyo multi-family assets valued at over JPY 20 billion ($134.6 million).

The portfolio comprises 300 rental units at brand-new, high-quality projects, Weave founder and CEO Sachin Doshi said Monday in a LinkedIn post. The additions build upon Weave’s existing presence in Roppongi, Azabujuban, Asakusa, Ueno, Kanda and other Tokyo residential areas.

“All assets in this portfolio are located in core Tokyo neighbourhoods offering a mix of units with fantastic accessibility to Tokyo Station, Shinjuku and other hubs around the city,” Doshi said.

The fund, dubbed Weave Living Japan Multi-Family Domestic Vehicle 1, drew support from some of the country’s “largest and highly coveted institutional investors” and brings Weave’s Japan assets under management to JPY 80 billion across 28 assets and 1,100 units after the platform’s entry into the market in early 2023.

More to Follow

In June, Weave and investment giant KKR revealed the acquisition of six Tokyo properties for their Japan multi-family venture, boosting the total portfolio to 17 assets.

The six assets include properties in the upscale Minato ward areas of Roppongi and Minami Azabu for the premium Weave Residences brand, targeting executives in search of high-end living in supply-constrained Minato, while the remaining properties are aimed at a more diverse tenant base under the Weave Place label.

The June announcement came six months after the launch of the partnership, known as Weave Living Japan Residential Venture I, with a portfolio of 439 units across 11 Tokyo properties that the operator had acquired and stabilised over the preceding 12 months.

WLJRV I aims to assemble a portfolio of more than 3,000 units in Japan. The venture invests in both newly built and existing assets, with an initial focus on Tokyo and a potential expansion into Osaka.

Doshi described the newly created domestic fund as a “prelude to more vehicle launches” in Japan and other geographies in Asia Pacific that would give domestic and global institutional investors “an opportunity to invest across the risk-return and product spectrum alongside APAC’s living sector powerhouse”.

Regional Tapestry

Across the sea in South Korea, Weave and Manhattan-based KKR are seeking to build a Seoul-centric portfolio of 1,200 rental homes. The current Korean assets are a 98-unit facility under the Weave Place brand in the capital’s Dongdaemun district and the 157-unit Weave Suites Sunyu Parkside in the financial hub of Yeouido.

In addition to Japan and Korea, Weave has projects in Singapore and the company’s hometown of Hong Kong, owning and operating a regional portfolio of 3,000 rental units under the Weave Studios, Weave Place, Weave Suites and Weave Residences brands.

In Singapore, Weave joined with asset management titan BlackRock and local builder Lian Beng Group in May to acquire Momentus Serviced Residences Novena for more than S$100 million ($77.4 million). The purchase came just over three months after Weave opened its second and third locations in the Lion City, a 175-unit facility on Mount Sophia near Orchard Road and a 93-building in the East Coast’s Katong area.

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