Weave co-living is in the process of acquiring a serviced apartment complex at 123 Queen’s Road West in Hong Kong, according to market sources.
The Hong Kong-headquartered firm is said to be paying approximately HK$585 million to purchase the 23-storey Largos Residences in the city’s Sheung Wan area. In response to inquiries by Mingtiandi, sources at Weave declined to comment on the reported transaction.
The property has the potential to become the third project for Weave, a Warburg Pincus-backed rental residential operator founded by Sachin Doshi, former head of private real estate investments in Asia Pacific for Dutch pension fund manager APG.
Western Building Trades for 29% Over 2015 Price
The Largos Residences includes 44 apartments and two ground floor shops between the Sai Ying Pun and Sheung Wan MTR stations. At HK$585 million, the co-living firm would be paying the equivalent of HK$ 16,076 per square foot of gross floor area for the 36,389 square foot (3,381 square metre) property.
The seller is a local investment consortium which had purchased the building four years ago for HK$426 million, giving the vendor an increase in price of HK$147 million, or 29 percent, over what the property traded for in 2015.
Each floor of the building has 1,500 square foot of leasable area and monthly rentals in the Largos Residences currently start at HK$30,000.
Weave Builds Hong Kong Co-Living Portfolio
Two-year-old Weave has been intent on building a portfolio of high-end but bite-sized apartments since it acquired a 13-storey hotel at 36 Boundary Street in Kowloon for what would become its first location. That property has 160 rooms, plus 6,000 square foot of shared space spread over three rooms.
Weave opened its Kowloon location in August 2018, with that milestone followed just three months later by the announcement of up to $413 million in investment from Warburg Pincus.
Soon after the investment Doshi had announced the goal of building a portfolio of 10,000 bedrooms serving students and young professionals across Asia’s major cities by 2023.
Three months ago, Weave acquired its second property, a 20,000 square foot, 100 room building in the Hung Hom area.