Canada Pension Plan Investment Board (CPP Investments) and Korean rental housing provider MGRV have formed a KRW500bn (€334m) joint venture to develop projects.
CPP Investments, which will hold a 95% stake in the joint venture, has committed up to KRW133bn for initial projects located in Seoul. MGRV will hold the remaining 5% ownership.
The joint venture, CPP Investments’ first direct investment in the residential sector in Korea, aims to develop properties in key corridors of Seoul, close to major business districts and leading universities.
Sophie van Oosterom, MD and head of real estate at CPP Investments, said: “This joint venture offers 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.”
Cho Kang-tae, the CEO of MGRV, said: “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,” adding, “we will continue to drive the ecosystem innovation in the market by expanding community- cantered properties.”
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