Weave Living now has properties in three of Asia’s top real estate markets with the rental housing investor and operator announcing on Thursday that it has acquired nine apartment assets in Tokyo.
The recently completed multi-family residential buildings add 352 homes to the company’s portfolio, which also includes assets in Singapore in addition to its home city of Hong Kong.
“I am extremely excited to be able to bring our unique, innovative and trusted rental solutions to a market with such limitless potential as Japan,” said Sachin Doshi, founder and group CEO of Weave said in a release. “Our aim is to grow our Japan assets under management to over $1.5 billion, representing more than one-third of our overall asset base by 2025, and I believe that a local team with decades of combined real estate and investment expertise, paired with Weave Living’s institutional know-how from years of bringing disruption to the rental housing sector across the Asia-Pacific region, is the perfect combination to deliver exceptional value to renters, prospective local partners, and our investors in Japan.”
Weave announced the acquisitions five months after bringing on board former Allianz Real Estate’s executive Daisuke Noguchi as its head of Japan to mark its formal entry into Asia’s largest rental housing market in April of this year.
The six-year-old company plans to open the first of the nine Japan properties during the fourth quarter of this year and says it expects to announce further acquisitions in Japan over the next few months as it builds up a presence in both Tokyo and Osaka.
“The acquisition of these first nine properties is a major step on our journey in Japan,” Weave’s Noguchi said. “Weave Living already has a proud track record of delivering unique new rental solutions combining great design and convenience in Hong Kong and Singapore. And while Japan is one of the most discerning markets in the world when it comes to quality accommodation, there are still many issues around city living here, while the traditional local rental model doesn’t always suit everyone.”
With Weave promoting its ability to offer busy professionals “hassle-free” living, the company has now expanded its Tokyo team to 12 professionals across acquisitions, development, asset management, leasing, operations, finance, and marketing.
While Weave has formed a number of partnerships with international fund managers for acquisitions in Hong Kong and Singapore, the company said it had not raised new funds for its Japanese initiative.
Japan as Top Target
The Japan launch comes less than two months after Weave opened its tenth location in Hong Kong, under its Weave Studios line of smaller units aimed at students and young professionals. The company also markets its Weave Suites units to corporate customers and Weave Residences for families and other customers looking for larger homes.
Weave entered the Singapore market in 2022 with its purchase of a hotel in the city-state’s Bugis area which it opened as Weave Suites – Midtown in March of this year. The company has also previously announced its intention to enter the Australian market.
The company founded by Sachin Doshi in 2017 announced its Japan milestone on the same day that Singapore’s City Developments Ltd (CDL) said it had acquired 25 Tokyo apartment buildings from BentallGreenOak for $230 million.
Japanese rental apartments have been one of the favourite targets of institutional real estate investors, with UBS Asset Management last month announcing a $230 million build-to-rent project in Tokyo.