Global investment firm KKR has teamed up with Weave Living to invest in rental housing assets in South Korea, with a focus on Seoul.

The strategic partnership aims to build an initial portfolio of 1,200 units and scale it over time as opportunities emerge.

The transaction marks KKR’s first investment in South Korea’s rental housing sector, with the New York-based company holding a majority stake.

Weave, which owns and operates rental accommodation units across Asia-Pacific, will hold the remaining minority stake and provide a range of management services to the venture.

The portfolio of assets will operate under the Weave Living brand umbrella. Weave intends to offer its full repertoire of brand options – including Weave Studios, Weave Place, Weave Suites and Weave Residence – to cater to the diverse needs of prospective tenants.

"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,” says David Cheong, managing director and co-head of acquisitions at KKR Asia real estate.

To date, KKR has completed more than 20 real estate transactions in Asia-Pacific across a range of segments, including mixed use, commercial, industrial, hotel, office and retail properties. In South Korea, it manages several real estate assets, including office towers in Seoul’s central business district and logistics centres across the country.

South Korea is Weave’s fourth market in Asia-Pacific, following Hong Kong, Singapore, and Japan.