New joint venture focuses on high-quality rental projects in Seoul for long-term growth potential
Canada Pension Plan Investment Board (CPP Investments) has announced a $500m joint venture with MGRV, a Korean rental housing provider, to develop rental housing projects in Korea.
CPP Investments will hold a 95 percent stake in the partnership, while MGRV will own the remaining 5 percent.
This initiative marks CPP Investments' first direct entry into Korea’s residential sector. The joint venture aims to develop high-quality rental properties in key areas of Seoul, targeting locations near major business districts and leading universities.
CPP Investments has committed $133m to the venture's seed projects, all of which are located in Seoul.
Sophie van Oosterom, managing director and head of Real Estate at CPP Investments, highlighted the joint venture's significance, stating it provides “an excellent opportunity to enter the residential sector in Korea and meet the strong demand for high-quality rental housing in the greater Seoul area where half of Korea's population resides.”
She also expressed satisfaction in partnering with MGRV, emphasizing their experience and the venture's potential to “generate attractive long-term returns for the CPP Fund.”
MGRV CEO Cho Kang-tae commented on the partnership, calling it a significant step in highlighting the growth potential of Korea’s rental housing market.
“This strategic partnership marks a significant step in demonstrating the high growth potential of the Korean rental housing market and MGRV's competitive operational capabilities on a global scale,” he said.
Cho added that MGRV would continue to innovate within the market by expanding community-centred properties.
