Global private equity firm KKR has teamed up with Weave Living to invest in rental housing assets in South Korea.

The partnership, primarily focused on Seoul, expects to build a rental housing portfolio of around 1,200 units through an initial investment and plans to expand over time as opportunities arise.

KKR will hold a majority stake in the partnership, representing its debut investment programme in the rental housing sector in South Korea. KKR already manages several assets in the country including office towers located in Seoul’s central business district and logistics centres across the country.

Weave will hold the remaining minority stake in addition to providing a range of management services to the venture as development manager and operating partner. South Korea is Weave’s fourth market in Asia-Pacific after Hong Kong, Singapore and Japan.

David Cheong, managing director and co-head of acquisitions on KKR’s Asia real estate team, said: “Korea has been a cornerstone of our Asia-Pacific real estate strategy for a decade, and we are thrilled to make our foray into the urban rental market, which represents an emerging investment segment in Seoul.

“We are also pleased to establish this venture with Weave, with whom we have developed a trusted and aligned relationship. Together, we look forward to leveraging our respective skills to expand this strategic partnership to better serve our tenants over the long term.”

Sachin Doshi, founder and group CEO of Weave Living, said: “In recent years, renters have been struggling with various housing issues and we have identified a clear gap in the market for beautifully designed, well-located homes, managed to global standards that meet the needs of urban renters and young professionals in South Korea, primarily Seoul.

“We believe the opportunity is extremely large, and our goal is to facilitate the institutionalisation of the rental housing market in the country by introducing the Weave model to the market.”

The partnership’s portfolio assets will operate under the Weave Living brand umbrella.

To read the latest IPE Real Assets magazine click here.