HONG KONG SAR -
Media OutReach
- 2 June 2022 - WEAVE LIVING, Asia-Pacific's leading fully-integrated
lifestyle rental accommodation provider, and PGIM REAL ESTATE, the
leading global real estate asset manager with c. USD210 billion of
assets under management and administration, today jointly announce the
formation of a USD200 million urban living joint venture (JV) in Hong
Kong.
The new JV has completed the acquisition of an en-bloc premises at 86
Tai Kok Tsui Road (the former Rosedale Hotel, Kowloon). This acquisition
represents PGIM REAL ESTATE's first joint investment with WEAVE LIVING
in the rental accommodation sector in Hong Kong. While PGIM REAL ESTATE
will hold 90% of the JV on behalf of its open-ended Asia Core strategy,
WEAVE LIVING will take a 10% stake and be responsible for asset,
development and operations management of the JV and its assets under the
WEAVE LIVING brand. The partners will also continue to explore
opportunities in the burgeoning rental accommodation sector in the
region's key gateway cities.
Over the next 12 months, the JV will invest to undertake an extensive
renovation of the West Kowloon property and expect to grow its Gross
Development Value to over USD240 million, with the intention to own and
operate the repositioned asset on a long-term basis. The property is set
to be transformed into the type of all-inclusive urban living concept
that has become synonymous with the WEAVE LIVING brand. The work will
include a reconfiguration of some of the property's 435 units to create
stylish, well-appointed, and flexible modern living solutions for
residents at what will become the largest property in the WEAVE LIVING
portfolio to date.
Leveraging the existing green design and practices of the property, the
JV partners will also explore more ways to incorporate sustainable
features throughout the property. Plans include the setting up of solar
panels on the rooftop with electricity generated to support power usage
throughout the 19,000 square feet of shared spaces within the property,
including the 4,000-square-foot rooftop terrace. In-line with the JV
partners' mutual vision around environment, social and governance (ESG)
considerations for this new location, WEAVE LIVING has also secured
green financing from The Bank of East Asia, Limited for this
collaboration.
Benett Theseira, Head of Asia-Pacific at PGIM REAL ESTATE, said: "Over
recent years, we have leveraged three thematic drivers to advance our
investment portfolio in Asia-Pacific, namely digital transformation,
generational change in living needs, and sustainability. We believe that
the demand for real estate is driven within this context, especially in
the Asia-Pacific market, which is why we are focusing on potential
investment opportunities that incorporate these core elements. We are
thrilled to enter into a JV with WEAVE LIVING, one of the leading
providers of contemporary and hassle-free rental accommodation, and an
ambitious stakeholder in the sector, in Asia-Pacific. It did not take
long to realise that our visions are aligned, especially regarding
commitment to putting ESG at the forefront of our operations. WEAVE
LIVING's commitment to reducing its carbon and waste footprint to
promote sustainable living concurs with our core investment strategies."
Sachin Doshi, Founder and Group CEO of WEAVE LIVING, said: "WEAVE LIVING
is honoured to form a JV with PGIM REAL ESTATE, a partnership which we
are confident can further scale the WEAVE LIVING brand and expand our
mission to bring together a diverse community of global citizens to
reside in our inspiring spaces that raise the standard of modern city
living. As far as we are aware, this is the first time a long-term,
global, core investor has established a foothold in the fast and
institutionalising multi-family living sector in Hong Kong, and we are
pleased that WEAVE LIVING has secured this opportunity in partnership
with PGIM REAL ESTATE for our newest property."
Doshi continues: "Since the establishment of WEAVE LIVING in 2017, we
have devoted our resources to promoting a sustainable way of living,
which forms an integral part of our ESG commitments. We have put
together a corporate ESG roadmap and policy framework to ensure our
vision is implemented across each of our properties. We are excited to
partner with PGIM REAL ESTATE to embrace these shared values and acquire
a West Kowloon property which is certified for its sustainability with
LEED Gold certification by the US Green Building Council."
With a total gross floor area of approximately 111,000 square feet,
the property will be equipped with generously sized and well-equipped
shared spaces that will span three levels, with communal spaces
including an entire floor dedicated to work-from-home facilities,
recreation areas, wellness spaces, state-of-the-art kitchens and
designer living spaces, typifying WEAVE LIVING's dedication to creating
communities of residents within each of its properties. The property
will also feature a 4,000-square-foot rooftop terrace with mesmerising
views of the Hong Kong skyline. It is targeted to welcome its first
residents in mid-2023.