Mastern Investment Management said Tuesday it has formed a partnership with Hanwha Corporation's construction division in the real estate development business.
Mastern Investment Management signed a memorandum of understanding (MOU) with Hanwha Corporation's construction division for joint real estate development projects at Hanwha Building in Janggyo-dong, Jung-gu, Seoul the previous day. The signing ceremony was attended by Park Kyung-bae, head of Mastern Investment Management's Domestic Division 1, and Yoon Sung-ho, head of Hanwha Corporation construction division's development business division, among other key officials from both sides.
Under the agreement, the two companies will pursue comprehensive cooperation ranging from identifying new development projects to establishing joint entities such as Project Financing Vehicles (PFVs). The core objective is to build an efficient business model by combining Mastern Investment Management's real estate finance expertise with Hanwha Corporation construction division's planning and construction know-how.
As an alternative investment-focused asset manager, Mastern Investment Management will design optimal investment structures for projects and oversee asset management of the joint entities. The firm will also lead the development of value-up strategies to maximize asset values after project completion. Hanwha Corporation's construction division will handle overall design and construction, maximizing project profitability through proactive risk management and sales and marketing strategies.
"We expect that the combination of expertise in real estate finance with extensive design and construction know-how will generate stable and sustainable business synergies," Park said.
"Through this agreement, we will strengthen our competitiveness in development projects based on the integration of finance and construction, and build a stable business structure," Yoon said.
