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Weave Living and Blackrock form JV to acquire Citadines Mount Sophia for $148 mil

/ EdgeProp Singapore |

February 2, 2024 6:03 PM SGT

The serviced apartment property will be rebranded under Weave Living's accommodation brand, Weave Suites, and is set to open in 2025.

A joint venture comprising Hong Kong-based accomoation company Weave Living and global asset manager Blackrock have bought Citadines Mount Sophia, a serviced residence at 8 Wilkie Road, for $148 million.

This marks Weave Living's second property in Singapore after it opened a co-living space at Kampong Glam last March. It's debut property was a 65-room serviced apartment at 33 Jalan Sultan and was the company's first foray beyond Hong Kong.

"We are excited to kick off the year with this partnership with BlackRock and securing our second and flagship location in Singapore. Following a successful launch of our first property in Singapore last year with WEAVE SUITES – MIDTOWN, we have witnessed overwhelming demand for our ... accommodation solutions," says Sachin Doshi, founder and group CEO of Weave Living.

He adds that the partnership with Blackrock as a joint venture partner will help to expand its footprint in Singapore, while accelerating its expansion throughout the Southeast Asia region. "We welcome BlackRock accelerate our expansion throughout the region’s most prominent rental housing markets and continue to build our institutional asset management business," says Doshi.

8 Wilkie Edge will be renovated and launched under Weave Living's contemporary serviced accomodation brand, Weave Suites. It is targeted to open its doors in early 2025.

The new, rebranded property will feature fully self-contained studios and one-bedroom apartments, supported by services and amenitiy-rich resident spaces. According to a press release from Weave Living announcing the acquisition, the joint venture partners anticipate "a significant uplift in yield and eventual capital value of the property through Weave Living's active operations and asset enhancement capabilities."

Citadines Mount Sophia is part of the mixed-use Wilkie Edge which also features a retail podium, office floors, and a basement carpark.

The sale of Citadines Mount Sophia was brokered by Cushman & Wakefield. Shaun Poh, executive director of capital markets at Cushman & Wakefield, notes that the oulook for the residential living sector is 'highly promising' and is driven by a rebound in international travellers to Singapore and the strong lne-up of events and activities landing hereover the next few years.

"The strong tourist performance presents a favourable environment for hoteliers and service apartments operators to capitalise on the growing demand, and for investors to enter the market," he says.

The residential living sector in Singapore is an underserved market showing strong demand and potential for rental growth, says Andrew Lee, diector of APAC real estate at Blackrock. "This transaction fits perfectly with our investment strategy in terms of geographies and sectors we are focusing across the region," he says.

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