- What CPP Investments has formed a joint venture with South Korean rental housing provider MGRV
- Why The firms will partner on rental housing projects in Seoul
- What next CPP will commit $133m to seed projects
Canada Pension Plan Investment Board has signed a $500m joint-venture agreement with MGRV to develop rental housing projects in South Korea.
Under the agreement, CPP will hold a 95% interest with MGRV holding the remaining 5%. The partnership aims to develop properties in key corridors of Seoul, close to major business districts and leading universities.
The Canadian firm has committed $133m to the joint venture’s seed projects, marking the company’s first direct investment in the South Korean residential sector.
CPP’s investment comes as the South Korean government looks to ease restrictions on commercial operators as part of its plan to boost the country’s rental housing supply. Measures include relaxing rent control and high corporate tax rates, as well as reducing acquisition and property taxes.
MGRV is a Korean rental housing provider operating in six locations through its Mangrove brand. Its flexible co-living developments have the capacity to house 1,200 people.
In January, CPP partnered with Cyrela Brazil Realty to develop residential condominiums in São Paulo. The firm also exited four joint-venture projects in China this month.
