Weave Living on announced the formation of a $200 million joint venture with a global institutional investor to acquire the 435-room Rosedale Hotel in Hong Kong’s Kowloon for HK$1.37 billion ($175.4 million), signalling a dramatic leap in scale for the residential conversion specialist.
The institutional investor, which Weave declined to name, was identified by market sources as US fund manager PGIM Real Estate and is said to hold a 90 percent stake in the joint venture. In addition to leading the acquisition, Weave will act as the asset manager, development manager and operations manager for the joint venture and its assets while retaining a 10 percent stake alongside its third-party capital partner.
The single transaction will boost the room count under Weave’s portfolio by 40 percent, founder and group CEO Sachin Doshi told Mingtiandi. Over the next 12 months, the Warburg Pincus-backed rental housing platform aims to continue that expansion to where it doubles the number of units it owns and manages to over 1,500, according to its press release.
“This JV marks our second institutional joint venture, taking our assets under management to about $1 billion in less than five years since the group’s formation,” Doshi said.
Weave Living and its partner are buying the hotel from a 60:40 joint venture between Shaw Holdings, a holding company controlled by the family of the late movie tycoon Sir Run Run Shaw and Hong Kong-listed ITC Properties.
After renovation of the Rosedale Hotel, the 111,000 square foot (10,312 square metre) property will feature shared spaces across three levels (over 15,000 square feet), including an entire floor for work-from-home facilities and a 4,000 square foot rooftop terrace that could serve as a restaurant or provide additional amenity space.
