SINGAPORE (EDGEPROP) - Weave Living and global real estate asset manager PGIM Real Estate have announced the formation of a US$200 million ($275 million) joint venture to explore opportunities within the rental accommodation sector in the region.

See also: PGIM Real Estate acquires another building in Brisbane’s CBD for US$54.4 mil

PGIM will hold 90% of the joint venture while Weave Living will hold the remaining 10% and be responsible for the development and operations of assets under the joint venture.

The parties have completed the acquisition of the first asset under this new joint venture — a 435-key property that was the former Rosedale Hotel, located in Hong Kong's Kowloon area. According to a June 2 joint press release by Weave Living and PGIM, the property will be renovated over the next 12 months. The work will include a reconfiguration of some of its 435 units to create flexible modern living solutions for residents. Upon completion, it will be Weave Living's largest property to date.

The new 111,000 sq ft property will feature communal spaces including work-from-home facilities, wellness spaces, kitchens and recreation areas. It will also incorporate sustainable features, including solar panels that will generate electricity to support power usage throughout the 19,000 sq ft of shared spaces within the property, including a 4,000 st ft rooftop terrace.

Beyond the Kowloon property, Weave Living and PGIM state that the joint venture will also continue to explore opportunities in the rental accommodation sector in the region’s key gateway cities.

The partnership between Weave Living and PGIM reflects a shared vision between the two parties, especially the commitment to putting ESG (environmental, social and governance) at the forefront, says Bennett Theseira, head of Asia-Pacific at PGIM Real Estate. “Weave Living’s commitment to reducing its carbon and waste footprint to promote sustainable living concurs with our core investment strategies,” he adds.

Sachin Doshi, founder and group CEO of Weave Living, says the company is confident it can further scale the brand through the partnership with PGIM. “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 for our newest property,” he remarks.