KKR & Co. (NYSE:KKR) inked a deal with WEAVE LIVING to create a strategic partnership to invest in rental housing assets in South Korea, mainly Seoul.
The strategic collaboration targets the creation of a rental housing asset portfolio of around 1,200 units.
This deal marks the KKR's first investment program in the rental housing sector in South Korea, boosting its platform in Asia Pacific.
As per the terms, KKR will hold a majority stake in the strategic alliance, while WEAVE will hold the remaining minority stake and will provide management services to the venture as development manager and operating partner.
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."
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."
KKR has presently closed over 20 transactions in the region across a range of segments, including mixed-use, commercial, industrial, hotel, office, and retail properties.
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Price Action: KKR shares closed higher by 0.09% at $100.85 on Monday.