Koramco Signs Agreement with MGRV... "Full-Scale Launch of New Business"

Koramco Asset Trust announced on the 14th that it has signed a business agreement with real estate impact developer MGRV to successfully develop and operate the new co-living project of ‘Koramco Life Infrastructure REIT’ and to expand the co-living industry base.

Koramco Life Infrastructure REIT is Koramco Asset Trust’s flagship listed REIT that promotes various development projects utilizing more than 160 HD Hyundai Oilbank gas stations nationwide and their sites. At the time of its KOSPI listing in 2020, all of its assets were related to gas stations, but it is rapidly diversifying its assets under the banner of a ‘land platform.’

For example, it has introduced large home appliance stores from Samsung and LG Electronics on gas station sites, acquired Coupang fulfillment and last-mile logistics centers, and accelerated asset diversification by newly opening drive-thru (DT) stores of major F&B brands such as McDonald’s and Paul Bassett on idle gas station sites.

Last year, Koramco Asset Trust disclosed the promotion of the co-living business as a new business area for Koramco Life Infrastructure REIT, and this business agreement with MGRV is a follow-up measure.

According to the business agreement, MGRV will collaborate on all aspects of the business for the approximately 160 gas station sites of Koramco Life Infrastructure REIT based on its co-living brand ‘Mangrove,’ including ▲feasibility review ▲business planning ▲space development ▲entrusted operation.

In addition, they will cooperate comprehensively throughout the entire process from surveying and development planning to acquisition of new sites suitable for co-living beyond the real estate owned by Koramco Life Infrastructure REIT. However, MGRV is tasked with achieving the high level of profitability and maximizing future development value set by Koramco Asset Trust.

Koramco Life Infrastructure REIT has recently been accelerating new businesses such as co-living and core offices, as well as adjusting its asset portfolio. To this end, it announced that it would sell 9 of its 160 gas stations and issue convertible bonds (CB) worth 11 billion KRW to be used for special dividends and new business promotion.

Yoon Jang-ho, Vice President and Head of Operations at Koramco Life Infrastructure REIT, said, “The partnership with MGRV is one of the opportunities to clearly show the new direction of Koramco Life Infrastructure REIT along with last year’s investment in Majesta City Tower,” adding, “Koramco Life Infrastructure REIT, as the most active REIT among domestic listed REITs, will continue to strengthen profitability and stability based on our blueprint ‘Vision 2030.’”

Meanwhile, last year Koramco Life Infrastructure REIT announced ‘Koramco Life Infrastructure REIT Vision 2030,’ an investment strategy for various new businesses such as unprecedented ‘M&A between REITs’ and ‘investment in real estate-related startups’ in the domestic REIT market as a K-REIT accelerator.

This content was produced with the assistance of AI translation services.