SLB's associated company and 32RE to run co-living assets with Weave

CATALIST-LISTED property developer SLB Development announced on Wednesday that its fund-management company 32 Real Estate (32RE) and an associated company are establishing a joint venture with Hong Kong-based Weave Co-Living to "acquire, develop, refurbish and operate co-living and rental accommodation assets in Singapore".

The companies entered into a subscription and shareholders agreement with Weave to establish a S$150 million equity joint venture, said SLB in a regulatory filing. Weave, a lifestyle-focused rental accommodation brand, will own 80 per cent of the JV and will be responsible for day-to-day management of the JV's assets.

The remaining 20 per cent will be owned by a fund managed by the 32RE group, which may appoint two out of six directors to the JV's board. 

Executive director and chief executive officer of SLB Matthew Ong said: "This ties in well with our intention to deepen our focus on the co-living and accommodation segment. Apart from diversifying our income stream, the fund-management business will provide SLB with access to like-minded partners and reputable global investors."

SLB has committed to contribute a stake of the total fund commitments via the 32RE Group, with the balance capital being raised from other accredited and/or institutional investors. The group has also agreed not to be involved or provide financial assistance to certain businesses that may be in direct conflict with the business of the JV during the relevant restricted periods stipulated in the agreement. 

Weave, founded in 2017 in Hong Kong, provides secure living spaces with a focus on design for people globally. In November 2018, global private equity firm Warburg Pincus invested US$181 million of growth capital in it to expand its business across the Asia-Pacific. 

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Shares of SLB closed on Wednesday at 10.5 Singapore cents, down 0.8 cent or 7.1 per cent.