Expansion Grows The JV’s 3-Minute Cluster to 200+ Keys Creating Major Operational Synergy To Drive Investor Returns
HONG KONG SAR – Media OutReach Newswire – 6 February 2024 – Dash Living, Asia Pacific’s leading serviced living community, and PGIM Real Estate have formed a second joint venture and completed an acquisition of The Sheung Wan by Ovolo, strengthening their existing partnership following the opening of Dash Living on Hollywood in December 2023. This new addition has bolstered their JV’s portfolio within a 3-minute walking radius to a total of over 200 keys in Hong Kong’s premier central business district, thus creating operational synergies to drive investor returns.
PGIM Real Estate is the $210 billion real estate investment and financing business of PGIM, the $1.22 trillion global investment management business of Prudential Financial, Inc. The asset has been acquired on behalf of the investors in its Asia Pacific value add strategy.
The Sheung Wan by Ovolo, a modern 56-key hotel in the bustling downtown Sheung Wan district, was previously co-managed by Ovolo and Dash Living since March 2021, adding to the firm’s in-depth understanding of the asset’s operational intricacies.
It will soon be converted to Dash Living on Queen’s, as an expansion of the recently launched co-living apartments Dash Living on Hollywood, which is a 3-minute walk away. Located amongst well-known restaurants, bars, cafes, and art galleries like the PMQ creative hub, along with city heritage sites such as the Man Mo Temple, this central location draws in young urban professionals and tourists looking for both extended and brief stays. The property is set to undergo an innovative transformation, incorporating Dash Living’s signature technology-enabled access to community amenities, such as a fully-equipped kitchen, meeting spaces, and outdoor areas. Residents from Dash Living on Hollywood and Dash Living on Queen’s will have access to shared facilities in both properties, fostering a collaborative environment with shared resources for joint community events aimed at promoting networking and interaction.
“We are confident that the new acquisition will significantly enhance the value proposition for young business talents and the next generation of tourists,” said Aaron Lee, CEO and Founder of Dash Living. “Our expanded joint venture with PGIM Real Estate is positioned to be a key driver in optimising investor returns for the entire cluster. The acquisition comes at an ideal time as our assets are experiencing a strong rebound and outperformance using this long and short-stay model, a robust asset class that addresses a core need in the market. Our 2023 average monthly rates in Hong Kong have surpassed pre-Covid level rates by over 20%.”
The new acquisition is the second co-living joint venture between Dash Living and PGIM Real Estate. The expanded collaboration in hybrid short-long stay assets comes at a time when short-stay rental faces sharp recovery as tourists and business travel returns to Hong Kong while Dash Living’s low cost technology enabled long-stay rental business delivers stability to the asset’s performance. .
“PGIM Real Estate continues to see strong growth potential in the hugely undersupplied residential-for-rent sector across the region. Working with a leading co-living operating partner Dash Living, we are delighted to add another high quality rental housing asset in Hong Kong’s prime location to our Asia Pacific value add portfolios,” said David Fassbender, Managing Director and Senior Portfolio Manager of Asia Pacific Value Add Strategy at PGIM Real Estate. “Driven by the secular shift from owning to renting and favourable policies, the living sector offers significant prospects for growth and attractive income for investors against a volatile market backdrop.”
Dash Living was founded in Hong Kong in 2014 and has since grown its footprint across key regions including Singapore, Japan and Australia, building a connected living community across Asia Pacific. In 2024, the firm has increased its presence and penetration in 26 locations in the region.
Dash Living
Dash Living is Asia Pacific’s leading provider of rental housing in Hong Kong, Singapore, Tokyo, and Sydney, backed by MindWorks, Grosvenor, Taronga Ventures, Chinachem, and more. With more than 2,000 rooms currently in our portfolio, Dash creates a global accommodation community through sharing economies, tech, and unique tenant experiences, empowering living in a connected world. From 2022 to 2023, over US$500 million in Gross Asset Value was acquired by renowned real estate asset managers to be managed by Dash Living.
About PGIM Real Estate
With US$210 billion in gross assets under management and administration (US$133 billion net),1 PGIM Real Estate provides investors and borrowers access to a range of real estate equity, real estate debt, agriculture, and impact solutions across the risk-return spectrum.
PGIM Real Estate is a business of PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU). PGIM Real Estate’s risk management approach, execution capabilities and industry insights are backed by a 50-year legacy of investing in commercial real estate, a 140-year history of real estate financing,2 and the local experience of professionals in 35 cities globally. Through its investment, financing, asset management, and talent management approach, PGIM Real Estate engages in practices that strive to ignite positive environmental and social impact, while pursuing activities that seek to strengthen communities around the world. For more information visit pgimrealestate.com.
1 As of 30 June 2023, net AUM is US$133 billion and AUA is US$49 billion.
2 Includes legacy lending through PGIM’s parent company, PFI.
