US$200 mil JV jointly acquired by Weave Living and PGIM Real Estate
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Weave Living and global real estate asset manager PGIM Real Estate have announced the creation of a 200 million US ($275 million) joint venture to investigate possibilities in the rental industry in this region.
PGIM will own 90% in the joint venture, while Weave Living will hold the remaining 10% and will be responsible for the development and operation of assets that are part of the joint venture.
The parties have concluded their acquisition process of initial property under the new joint venture -the 435-key property which was previously the Rosedale Hotel, located in Hong Kong’s Kowloon region.
According to a joint press release from Weave Living and PGIM, the property will undergo a major renovation in the coming 12 months. The renovation will involve an overhaul of the 435 units in order to offer flexible, living options for residents. After completion the project will be Weave Living’s biggest property to date.
The 111,000 sq ft property will include communal spaces such as work-from-home amenities as well as wellness areas kitchens, and recreational spaces. It will also feature green features like solar panels that generate electricity that will power across the 19,000 square feet of communal spaces in the property and an 4,000 sq. ft. rooftop terrace.
Outside that of the Kowloon property, Weave Living and PGIM declare that their joint venture plans to continue to look for opportunities in the rental housing sector within the region’s most important gateway cities.
The collaboration that exists between Weave Living and PGIM reflects an understanding of the two companies, with a particular focus on the desire to place ESG (environmental social, economic and governance) at the top of the list as stated by Bennett Theseira, head of Asia-Pacific at PGIM Real Estate. “Weave Living’s pledge to reduce its waste and carbon footprint in order to encourage sustainable living is in line with our fundamental investment strategies,” he adds.
Sachin Doshi the founder and group chief executive officer for Weave Living, says the firm is confident that it can grow the brand further through the alliance with PGIM. “As as we’re aware this is the first occasion that a long-term, global, and core investor has established itself in the rapidly growing and institutionalizing multi-family living industry that is Hong Kong, and we are delighted to announce that Weave Living has secured this opportunity through collaboration with PGIM to build our most recent property,” he remarks.