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Sachin Doshi, Founder and CEO, Weave Living
Weave Living aims to double its portfolio with an expansion set that spans Hong Kong, Singapore and Tokyo, so existing shareholders founder and CEO Sachin Doshi and private equity giant Varberg Pincus The company announced that it has secured further investment from Mr. Monday.
The equity injection will expand Weave’s brand footprint and portfolio to more than 5,000 owned and managed units in rental housing markets including Tokyo, Osaka, Seoul, Singapore, Hong Kong and other major gateway cities by 2025. , the company said in a release.
The new investment will enable the company to double its current portfolio of 2,500 units, while also allowing Hong Kong-based Weave to manage institutional assets in the rental housing sector primarily in key markets of Japan, South Korea and Singapore. You can also grow your business.
This news comes just weeks after Weave officially began raising capital for its first multifamily fund dedicated to the Japanese market. Weave Living Japan Residential Venture I is planned as the first in a series of ventures targeting the rental housing sector in Asia’s second-largest economy, with an initial target of 50 million yen from global institutional investors. is to raise dollar shares.
“We are pleased to embark on Weave’s next phase of growth with the strong support of Warburg Pincus, who has been a trusted strategic partner for us since 2018,” said Doshi. “We have 25 existing locations across the major rental housing markets in Asia Pacific, continue to expand our services across the region, and with strong support from institutional investors, our assets under management will grow in the coming quarters. We plan to grow to more than $3.5 billion.”
Tokyo Seed Asset
Japan Residential Venture I will be seeded with a portfolio of 11 recently completed assets in prime Tokyo locations that the company has acquired over the past four months. Mintyandi reported in September last year that Wiebe entered Japan with the purchase of nine multifamily assets with 352 units in the capital.
Warburg Pincus Managing Director Qiqi Zhang
Backing for the new vehicle could be through fund investments, club organizations or a single investor, with Weave retaining up to 10 percent of the strategy, Doshi told Mintyandi.
As Weave scales, it remains committed to its strategy of owning and managing real estate stakes within its portfolio, and Doshi believes the company is an asset-driven business with industry-leading in-house management capabilities. It states that there is.
“We (already like many companies) raise third party capital from institutional investors at the investment program or asset level and provide a full range of investment management, design and development management. We will continue to grow our business,” operating and marketing these vehicles and joint ventures. “When we do this, Weave will always retain ownership of these assets and the underlying vehicles,” he said.
Weave currently has a team of 15 people in Japan who are responsible for all aspects of the business including investments, asset management, design and technology, with Doshi spending much of his time in Japan. In Japan, the company actively works with developers, typically acquiring assets through forward purchase agreements and leveraging its asset management capabilities to launch projects.
ongoing partners
As institutional investors seek rental housing opportunities around the world, Weave has established itself as the only residential specialist in Asia Pacific. Since its founding in 2017, the company has accelerated its expansion by partnering with some of the world’s largest real estate fund managers in its ventures across the three markets in which it currently operates.
Earlier this month, Weave announced a joint venture with BlackRock Fund to buy a serviced apartment block in Singapore for S$148 million ($111 million). A joint venture with the world’s largest asset management firm has acquired Citadines Mount Sophia, a 154-unit property near the city-state’s Bugis district, from CapitaLand Ascot Trust worth just over S$961,000 per key. An agreement has been reached to acquire the facility as the operating company’s second base in Singapore.
The Hong Kong-based company opened its first Singapore store in Kampong Glam in March last year and quickly rented out a set of 65 former shophouses at higher rents than originally estimated.
The BlackRock joint venture follows Weave’s previous partnerships with some of the world’s top fund managers. The company’s partnerships include a joint venture with LaSalle Investment Management to acquire an apartment tower on Robinson Street in Hong Kong for $35 million in August 2022.
The deal in Central comes just three months after Wiebe teamed up with Angelo Gordon to buy a hotel in the western part of Hong Kong Island for $115 million. In April 2022, Wiebe partnered with PGIM Real Estate to acquire the Rosedale Hotel in Kowloon for $175 million.
watch this space
Although he did not provide details, Doshi hinted that Weave is in advanced stages of announcing significant operations in new markets. In addition to Weave’s announced projects in Hong Kong, Singapore and Japan, the company’s website has a headline for a South Korean project and a promise that a listing is “coming soon.”
Qiqi Zhang, managing director of Warburg Pincus, noted Weave’s “strong track record” of delivering innovative and customer-focused projects, and said the company is a regional market leader in the fast-growing living sector. He expressed confidence that he is in a good position to become
“We are very impressed with the performance and growth of Weave, our flagship rental housing platform in the Asia Pacific region, and are excited to increase our investment in the company and partner with Mr. Sachin and his outstanding management team. We are pleased to expand our partnership,” said Zhang. .
Warburg Pincus announced its first investment in Weave in 2018, putting up to $413 million into the company.
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