On the 24th, real estate impact developer MGRV announced that it will establish a joint venture (JV) with Canada Pension Plan Investment Board (CPP Investments) for the development of rental housing projects. The JV will be formed with a scale of approximately 500 billion won, with MGRV holding 5% of the equity and 95% held by Canada Pension Plan Investment Board.
This collaboration marks the first direct investment by Canada Pension Plan Investment Board in the Korean residential market. The two companies plan to invest up to 133 billion won as the seed project of the JV to develop rental housing near key business districts and universities in Seoul.
Canada Pension Plan Investment Board is one of the world's top 10 pension funds, with assets under management (AUM) totaling 675.1 billion Canadian dollars (approximately 685 trillion won) as of September last year. Headquartered in Toronto, Canada, it invests in publicly traded and private equities, real estate, and infrastructure around the world.
Cho Gang-tae, CEO of MGRV, said, "This strategic partnership has demonstrated the high growth potential of the Korean rental housing market and MGRV's global competitiveness," adding, "We will lead ecosystem innovation by significantly increasing the supply of community-centered spaces."
Sophie van Woestrom, head of the institutional sector at Canada Pension Plan Investment Board, noted, "The formation of this JV represents a great opportunity to enter the Korean residential market, which meets the demand for high-quality housing services in the metropolitan area where more than half of the population resides," and added, "It is very encouraging to collaborate with MGRV, an experienced local partner."