This article was displayed on May 23, 2025, at 5:37 p.m. on the ChosunBiz MoneyMove site.
The sale of mPLUS asset management by the Military Mutual Aid Association has encountered difficulties. After one previous failure, a re-bid was conducted, but the selection of preferred bidders halted due to low price offers from potential buyers. Some in the industry speculate that there is a high possibility of delays in the sale schedule.
According to investment banking (IB) industry sources on the 23rd, the Military Mutual Aid Association has not been able to select a preferred bidder for nearly two weeks after the second main bidding for the sale of mPLUS asset management, which was conducted on the 14th. This stands in contrast to expectations for a rapid follow-up process through re-bidding to existing buyers.
mPLUS asset management was established as a real estate-focused asset management company in 2008. Initially, it was operated by Korea Land Trust, a subsidiary of the Military Mutual Aid Association, but 10 years ago in 2015, it became a wholly owned subsidiary of the Military Mutual Aid Association and was recently put up for sale under the association's asset management restructuring policy.
The discrepancy in price expectations has led to a halt in the sale process. In the recent second main bidding, which included participants from the preliminary bidding in February and was aimed at eligible acquisition candidates, buyers offered a valuation of around 30 billion won for mPLUS asset management's equity.
The Military Mutual Aid Association is reported to hope for a valuation of over 40 billion won. Furthermore, the price expectations have risen. This is attributed to the fact that Cobalt Investment-VCM Consortium, which was selected as the preferred bidder in the first main bidding, assessed the total equity value at 57 billion won.
However, the acquisition of mPLUS asset management by the Cobalt Investment-VCM Consortium fell through due to a failure to secure financing. It is reported that the consortium, which proposed a structure to acquire 70% of the equity in mPLUS asset management, was unable to provide the contract deposit of 2 billion won in the form of a performance guarantee.
In this second main bidding, some buyers are understood to have set the total equity value of mPLUS asset management at below 30 billion won. This was based on applying a multiple of about 1.2 times the net worth of 23 billion won recorded at the end of last year, indicating that the valuation has halved.
Typically, transactions involving real estate asset management companies are conducted at a price-to-book ratio (PBR) of about 1.5 times, but this reflects the recent decline in profitability of asset management companies due to an economic downturn in the real estate market. mPLUS asset management recorded an approximate net loss of 3.8 billion won last year.
Market observers speculate that the Military Mutual Aid Association may postpone the timing of the sale of mPLUS asset management until after improvements in performance. Since real estate fund management fees are based on revenues, profitability will vary depending on whether a fund is established; fund establishment was sluggish last year.
This year, the re-engagement of institutional investors such as pension funds and mutual aid associations, referred to as 'big players' in the capital markets, also supports the possibility of postponing the sale timeline. Immediately, the National Pension Service, the largest institutional investor in the country, has begun selecting small and medium-sized asset management firms to manage domestic real estate investments.
Meanwhile, mPLUS asset management had approximately 1.3 trillion won in managed assets as of the end of last year, based on contributions from the Military Mutual Aid Association. Its core business areas include real estate leasing, development, overseas alternative investments, and corporate finance, and it reported an operating profit of -4 billion won, turning from a profit of 1.2 billion won the previous year.