WEAVE LIVING and PGIM REAL ESTATE Join Forces for a USD200 Million Urban Living Joint Venture
The new partnership will see the two companies explore their shared commitment to ESG for their first joint city living project in Hong Kong’s booming West Kowloon district.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.
About Weave Living
Founded in 2017 by Sachin Doshi as a response to the gap in the market for beautifully designed and professionally managed living options, WEAVE LIVING currently owns and operates rental accommodation units across the Asia-Pacific region under its three consumer brands — WEAVE STUDIOS, WEAVE SUITES and WEAVE RESIDENCES — catering to a broad and diverse demographic of urbanites and professionals in key gateway cities.
Offering flexible lease terms and move-in-ready homes with all-inclusive prices for a streamlined, stress-free rental process, WEAVE LIVING's dedication to its residents and neighbourhood is matched by a commitment to the local community via frequent collaborations with artists, brands, and partners, which imbues each WEAVE location with a true sense of place.
With a commitment to ESG (Environmental, Social and Governance), WEAVE LIVING is constantly seeking the best possible ways to reduce environmental impact and carbon footprint of its properties and residents, while ensuring an uncompromised rental experience is delivered to the residents at all times.
About PGIM REAL ESTATE
As one of the largest real estate managers in the world with US$209.3 billion in gross assets under management and administration1, PGIM Real Estate strives to deliver exceptional outcomes for investors and borrowers through a range of real estate equity and debt solutions across the risk-return spectrum. PGIM Real Estate is a business of PGIM, the US$1.4 trillion global asset management business of Prudential Financial, Inc. ( NYSE: PRU).
PGIM Real Estate's rigorous risk management, seamless execution, and extensive industry insights are backed by a 50-year legacy of investing in commercial real estate, a 140-year history of real estate financing2, and the deep local expertise of professionals in 32 cities globally. Through its investment, financing, asset management, and talent management approach, PGIM Real Estate engages in practices that ignite positive environmental and social impact, while pursuing activities that strengthen communities around the world. For more information, visit pgimrealestate.com.
1 As of 31 Dec. 2021, AUM reflected as gross. Net AUM is US$137.9 billion and AUA is US$45.9 billion.
2 Includes legacy lending through PGIM's parent company, Prudential Financial, Inc.
PGIM, the global asset management business of Prudential Financial, Inc. ( NYSE: PRU), ranks among the top 10 largest asset managers in the world3 with more than US$1.4 trillion in assets under management as of 31 March 2022. With offices in 17 countries, PGIM's businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including public fixed income, private fixed income, fundamental equity, quantitative equity, real estate and alternatives. For more information about PGIM, visit pgim.com.
Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom, or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information, please visit news.prudential.com.
3 Prudential Financial, Inc. (PFI) is the 10th largest investment manager (out of 527 firms surveyed) in terms of global assets under management based on Pensions & Investments' Top Money Managers list published on 31 May 2021. This ranking represents global assets under management by PFI as of 31 Dec. 2020.