Weave Living Acquires 108 Tokyo Apartment Units with Japanese Investors
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Weave Living has acquired three Tokyo apartment buildings comprising 108 units backed by a consortium of Japanese investors to expand its domestic capital partnerships.
The off-market purchase, announced Wednesday, lifts the Hong Kong-based rental operator’s assets under management in Japan to JPY 120 billion ($764 million) across nearly 50 properties. Weave did not disclose the purchase price or the seller’s identity, but confirmed the investor group includes one of the world’s largest financial services institutions.
Refurbishment and Digital Leasing Plan
Two of the assets, Ginza Hatchobori and Yoyogi Uehara, sit in Chuo and Shibuya wards inside Tokyo’s central five districts. The third building is in Taito ward’s Asakusabashi district.
Plans call for converting the three properties into the Weave Place long-stay furnished accommodation brand. Upgrades will cover common areas and full apartment interiors. Leasing operations will shift to the company’s proprietary mobile app, which bundles utility bills and Wi-Fi into single monthly contracts with minimal upfront costs.
Furnished units target professional tenants relocating to the Japanese capital. The model bypasses traditional multi-year leasing structures that require heavy initial deposits.
“In August, Weave partnered with Aberdeen Investments on a JPY 15 billion acquisition of six apartment blocks backed by Dutch pension manager PGGM.”
Institutional Capital in Tokyo Living Sector
Institutional capital into Japanese residential assets has accelerated as operators look for steady yields backed by urban migration. Furnished formats generate higher revenue per square metre than conventional long-term leases. However, they demand higher operational oversight and carry shorter lease profiles.
Across the 23 wards, Tokyo residential rents rose 2.8 percent in the second quarter and 5.3 percent year on year to JPY 4,829 per square metre per month. In the central five wards, rents climbed 5.2 percent from a year earlier. Occupancy there edged down 0.8 percentage points to 95.6 percent.
Weave founder and chief executive Sachin Doshi said the transaction reflects “the continued interest of offshore and domestic capital in seeking a differentiated exposure to the living sector in Japan”.
Expansion Following KKR Venture Exit
Recent activity follows a series of programmatic joint ventures across Tokyo. Weave closed its first domestic partnership last November with Mitsubishi UFJ Financial Group anchoring an 11-property, JPY 20 billion portfolio. In January, it added a JPY 22 billion venture with BGO Strategic Capital Partners for 10 buildings.
In August, Weave partnered with Aberdeen Investments on a JPY 15 billion acquisition of six apartment blocks backed by Dutch pension manager PGGM. On September 7, Weave and private equity firm KKR completed a JPY 55 billion recapitalisation of a 14-property Tokyo portfolio with a Southeast Asian institutional investor. That deal allowed Weave to exit its equity position while keeping long-term management rights.
Phased unit refurbishments are now underway across the newly acquired buildings. Renovated units are scheduled to roll out onto the company’s digital leasing platform over the coming quarters.
Questions & Answers
Q.What is Weave Living's total assets under management in Japan following this acquisition?
What is Weave Living's total assets under management in Japan following this acquisition?
The acquisition increases Weave Living's assets under management in Japan to JPY 120 billion ($764 million). This total now spans across nearly 50 properties within the country.
Q.Where are the three newly acquired Tokyo apartment buildings located?
Where are the three newly acquired Tokyo apartment buildings located?
Two of the buildings, Ginza Hatchobori and Yoyogi Uehara, are in Chuo and Shibuya wards. The third property is situated in the Asakusabashi district of Taito ward, all within Tokyo.
Q.How will Weave Living manage the leasing for these new properties?
How will Weave Living manage the leasing for these new properties?
Leasing operations for the new properties will shift to Weave Living's proprietary mobile app. This app bundles utility bills and Wi-Fi into single monthly contracts, requiring minimal upfront costs from tenants.
Q.Which investor group is backing Weave Living in this acquisition?
Which investor group is backing Weave Living in this acquisition?
The acquisition is backed by a consortium of Japanese investors. Weave Living confirmed this investor group includes one of the world’s largest financial services institutions, though the specific entity was not named.
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