KKR Expands Real Estate Playbook In Japan: New Venture With Weave Living Targets Over 3,000 Residential Units

On Wednesday, KKR & Co. KKR unveiled the formation of a strategic partnership, “Weave Living Japan Residential Venture I,” in Japan.

This joint venture will focus on actively managing a multi-family residential program, targeting a portfolio of over 3,000 residential units.

The strategic partnership has been initially seeded with 11 newly acquired residential properties in Tokyo, totaling 439 units.

The properties are operating at near full occupancy, featuring a mix of traditional and fixed-term leases.

The initiative will invest in both newly developed and existing properties, initially concentrating on Tokyo, with the potential for expansion into Osaka.

This strategic partnership builds on KKR and Weave Living’s previous urban living collaboration in South Korea, which was announced in March of this year.

It will leverage Weave Living’s vertically integrated management capabilities and digital-first approach to introduce innovation, customer-centricity, and differentiation to Japan’s rental housing market.

KKR is investing through Asia Real Estate Partners, marking its latest real estate venture in Japan.

This builds on KKR’s broad real estate portfolio in Japan, which includes KJR Management (overseeing two REITs), Hyatt Regency Tokyo, Four Points Flex by Sheraton with Marriott, a multifamily property portfolio in Tokyo, and office assets across the country.

David Cheong, Managing Director and Co-Head of Acquisitions on KKR’s Asia Real Estate team, said, “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.”

Sachin Doshi, Founder and Group CEO of Weave Living, stated, “We are excited to be working with KKR again following the success of our collaboration in South Korea.”

Last week, KKR led a $370 million growth investment in Lighthouse, a commercial intelligence platform for the travel and hospitality industry.

Investors can gain exposure to KKR via FM Focus Equity ETF FMCX and EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF LBO.

Price Action: KKR shares are up 0.72% at $161.18 premarket at the last check Friday.

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