Private equity giant KKR and Asia’s living sector specialist Weave Living have announced a strategic partnership in Japan to develop over 3,000 multi-family residential units.
The initiative – Weave Living Japan Residential Venture I – will focus on both newly built and existing assets, initially targeting Tokyo with potential expansion to Osaka, per the announcement.
The partnership has been seeded with 11 brand-new residential properties in Tokyo, comprising 439 units that Weave Living acquired and stabilised over the last 12 months since it announced its debut acquisitions in Japan in 2023.
According to the announcement, the assets are operating at close to full occupancy with a mix of traditional and fixed-term leases.
The collaboration builds on the two firms’ urban living partnership in South Korea announced in March. The venture will leverage Weave Living’s vertically integrated management and digital-first approach to innovate Japan’s rental housing market.
“We are pleased to extend our relationship with Weave Living beyond our successful strategic partnership in Korea and into Japan, which is a key market for KKR’s real estate strategy in Asia Pacific and globally,” said David Cheong, managing director and co-head of acquisitions on KKR’s Asia Real Estate team.
KKR is making the investment from its Asia Real Estate Partners fund. The transaction also marks KKR’s latest real estate investment in the Asia-Pacific region and Japan.
Its previous investments include KJR Management, a Japanese real estate manager overseeing two REITs; the Hyatt Regency Tokyo hotel in Shinjuku; the launch of the Four Points Flex by Sheraton brand in partnership with Marriott International; a portfolio of multifamily properties in Tokyo; and various office assets across Japan.
KKR has so far raised $808 million for its latest private credit fund dedicated to the Asia-Pacific region, according to a regulatory filing with the US Securities and Exchange Commission.
KKR Asia Credit Opportunities Fund II is understood to be the second instalment in the firm’s pan-Asia private credit fund series that makes performing credit investments across strategies in direct lending, capital solutions, and collateral-backed lending.
