Warburg Pincus has increased its equity investment in Weave Living to help the living sector specialist expand and build a US$3.5bn (€3.2bn) Asia Pacific portfolio.

Warburg Pincus made its initial investment of US$181m in 2018 with an option to upsize its investment to US$413.5m. However, the size of the fresh injection was not disclosed.

Weave said with the new equity injection it would be able to expand its brand footprint and property portfolio to more than 5,000 owned and managed units across the region’s deepest rental housing markets by 2025. Its targeted cities are Tokyo, Osaka, Seoul, Singapore, and Hong Kong. 

Qiqi Zhang, managing director at Warburg Pincus, said: “Weave has demonstrated a strong track record of delivering innovative and customer-centric accommodation solutions across the markets that they operate in. We are confident that Weave is well-placed to become the regional market leader in the fast-growing living sector.”

Sachin Doshi, founder and group CEO of Weave Living, said: “We continue to grow our offering across the region with 25 existing locations throughout Asia-Pacific’s key rental housing markets, and with strong institutional investor support, are on track to grow our AUM to over US$3.5bn over the coming few quarters.”

Earlier this month, the company announced that it has established an S$188m (€129m) joint venture with BlackRock to acquire a flagship asset, Citadines Mount Sophia, in Singapore from CapitaLand Ascott Trust.

It has also recently launched Weave Living Japan Residential Venture I, which is expected to be the first in a series of vehicles targeting the rental housing sector in Japan with an initial target size of US$500m in equity commitments from global institutional investors.

Weave’s capital partners include TPG, PGIM Real Estate, LaSalle Investment Management, and Angelo Gordon, another US global alternative investment management, which are invested across its various rental housing ventures ranging from opportunistic to core mandates.

To read the latest IPE Real Assets magazine click here.