The Hong Kong-headquartered firm is said to be paying approximately HK$585 million (£59 million) to purchase the property which could become the third project for Weave, a Warburg Pincus-backed rental residential operator founded by Sachin Doshi, former head of private real estate investments in Asia Pacific for Dutch pension fund manager APG.

The Largos Residences includes 44 apartments and two ground floor shops between the Sai Ying Pun and Sheung Wan MTR stations. At HK$585 million, the co-living firm would be paying the equivalent of HK$ 16,076 (£1,622) per square foot of gross floor area for the 36,389 square foot (3,381 square metre) property.

The seller is a local investment consortium which had purchased the building four years ago for HK$426 million (£43 million), giving the vendor an increase in price of HK$147 million (£14.8) million, or 29 per cent, over what the property traded for in 2015.

Weave has been intent on building a portfolio of high-end compact apartments since it acquired a 13-storey hotel at 36 Boundary Street in Kowloon for what would become its first location. That property has 160 rooms, plus 6,000 square foot of shared space spread over three rooms.

Weave opened its Kowloon location in August 2018, followed three months later by the announcement of up to $413 million in investment from Warburg Pincus.

Soon after the investment Doshi had announced the goal of building a portfolio of 10,000 bedrooms serving students and young professionals across Asia’s major cities by 2023.

Three months ago, Weave acquired its second property, a 20,000 square foot, 100-room building in the Hung Hom area.