MGRV secured a follow-up investment worth 13 billion won, accelerating its domestic rental housing development business with the Canada Pension Plan Investment Board (CPPIB).
MGRV said on the 3rd that existing investors T.S. Investment and HB Investment made follow-up investments of 10 billion won and 3 billion won, respectively. The investment was made as demand for housing for one to two domestic and foreign residents in central Seoul has surged, leading to expectations for expanded supply of rental housing.
MGRV is steadily pushing ahead with development projects with the Canada Pension Plan Investment Board, focusing on new-build, development-type rental housing. About three months after signing a joint investment agreement (JV) worth 500 billion won, the company finalized four new development projects in Seoul. It recently purchased additional land in Seongdong District, Seoul, securing a total of five projects. By investing 100% equity at the time of land acquisition, it is establishing a stable financial structure and a swift decision-making system. In line with its existing business plan, MGRV is continuously reviewing additional investments centered on key areas of Seoul.
Chief Executive Cho Kang-tae of MGRV said, "This investment reaffirmed the market's trust in MGRV's business direction and operational capabilities," adding, "We plan to work with the Canada Pension Plan Investment Board to further expand the supply of quality housing in urban areas in a sustainable way."
MGRV provides a new form of residential and lodging services combined with community through its New Living Community brand Mangrove. It is developing and operating six locations in Korea with capacity for about 1,300 people. Including 11 projects under development, the network will expand to a total of 17 locations with capacity for up to about 5,600 people.