Canada Pension Plan Investment Board (CPP Investments) and Korean rental housing provider MGRV have announced a KRW 500 billion (about $350 million) joint venture to develop high-quality rental housing in Korea.
CPP Investments will hold a 95% stake in the venture, with MGRV owning the remaining 5%.
This marks CPP Investments’ first direct entry into Korea’s residential sector, with a focus on developing properties in key Seoul corridors near major business districts and universities.
CPP Investments has committed KRW 133 billion (C$133 million) to seed projects in Seoul.
“This joint venture provides an excellent opportunity to meet the strong demand for quality rental housing in greater Seoul, home to half of Korea’s population,” said Sophie van Oosterom, Managing Director and Head of Real Estate at CPP Investments. “Partnering with MGRV enables us to pursue attractive long-term returns for the CPP Fund.”
MGRV CEO Cho Kang-tae called the partnership a milestone, showcasing the potential of Korea’s rental housing market and MGRV’s operational expertise.
“We aim to drive innovation by expanding community-centered properties,” he said.
MGRV operates under the Mangrove brand, offering flexible co-living spaces that promote community and a customer-focused approach.
CPP Investments manages a C$675.1 billion fund and invests globally across diverse asset classes.
This collaboration underscores the growing demand for rental housing and highlights Korea’s evolving residential market dynamics.
Business News Asia