Weave Living and KKR Establish Urban Living Strategic Partnership in South Korea

WEAVE LIVING (“Weave”), Asia Pacific’s preeminent living sector specialist, and KKR, a leading global investment firm, today announced the establishment of a strategic partnership to invest in rental housing assets in South Korea, with a focus on Seoul. The strategic partnership will target to build a rental housing asset portfolio of c.1,200 units with the initial tranche of capital and the strategic partners intend to scale this program over time as opportunities emerge.

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Cityscape at Night in Seoul, South Korea (Photo courtesy of Freepik)

This transaction marks KKR’s first investment program in the rental housing sector in South Korea. KKR will hold a majority stake in the strategic partnership, while Weave will hold the remaining minority stake in addition to providing a range of management services to the venture as development manager and operating partner. The portfolio of assets will operate under the Weave Living brand umbrella, and Weave intends to offer its full repertoire of brand options which includes four consumer brands — WEAVE STUDIOS, WEAVE PLACE, WEAVE SUITES and WEAVE RESIDENCES — to renters in South Korea to cater to the diverse needs of prospective tenants.

David Cheong, Managing Director and Co-Head of Acquisitions on KKR’s Asia Real Estate team, said: "Korea has been a cornerstone of our Asia Pacific real estate strategy for a decade, and we are thrilled to make our foray into the urban rental market, which represents an emerging investment segment in Seoul. We are also pleased to establish this venture with Weave, with whom we have developed a trusted and aligned relationship. Together, we look forward to leveraging our respective skills to expand this strategic partnership to better serve our tenants over the long term.”

Sachin Doshi, Founder and Group CEO of WEAVE LIVING said: “Weave is excited to join forces with KKR to establish a foothold in the dynamic living sector in South Korea. KKR has an excellent track record as a real estate investor, and we are honoured that they have chosen Weave as their strategic partner for this asset class in the country. In recent years, renters have been struggling with various housing issues and we have identified a clear gap in the market for beautifully designed, well-located homes, managed to global standards that meet the needs of urban renters and young professionals in South Korea, primarily Seoul. We believe the opportunity is extremely large, and our goal is to facilitate the institutionalisation of the rental housing market in the country by introducing the Weave model to the market.”