(This article was originally posted on The Bell (www.thebell.co.kr) on July 26^th, 2024 in Korean and translated. See the original article through URL link below)

 

URL: http://www.thebell.co.kr/free/content/ArticleView.asp?key=202407251608540520101288

 

GHP (GH Partners) is a major player in the rental housing market. It not only has the basic real estate management bona fides, but also has expertise in marketing and services. The company's expertise is evidenced by the fact that it has developed and employed its own PMS (Property Management System) since its inception. As a result, GHP was able to have its first net profit year in 2023. 

 

This year, GHP is looking to take things to another level. The company has signed a memorandum of understanding (MOU) with Thrive Senior Living, a U.S. based senior housing company. The two companies established this joint venture with the goal of supplying senior housing in Korea under the Thrive brand and to provide a unique housing platform as well.

 

◇First net profit year in the fifth year of its corporate spin-off and operating nearly 20,000 units.

The backbone of GHP is GenstarMate’s housing business. GenstarMate entered the housing rental management business when it took over the management of 173 units owned by Hope Rental Housing No. 3 REIT, a government-led corporate rental housing REIT project. The government introduced the housing rental management business system in 2014 to revitalize corporate rental housing through REITs, and Genstarmate became the first company in Korea to manage the operation of a rental housing REIT.

 

As corporate rental housing expanded, GenstarMate continued to grow its portfolio by collaborating with construction companies such as SK ecoplant co., Ltd., Kumsung Baekjoe Construction Corp, Jungheung Construction, and SEOHAN Const. & Eng.co., Ltd., who were all interested in the corporate rental housing business.

 

When the cumulative order volume exceeded 30,000 units, GenstarMate had initially planned to tackle it alone. However, it was later decided that it would be more advantageous for a corporate spin-off and GHP was established as an independent company rather than a subsidiary of GenstarMate. On October 11, 2018, GH Partners was founded, and Mr. Chaewook Im became its CEO and has been leading the company ever since.

 

Mr. Im is a respected and influential figure in the market, having served as the second chairman of the Korea Residential Rental Management Association. Under his stewardship, Mr. Im has established GHP as a true Property Manager, capable of not only asset management, but also market research, product planning, residential services, and more.

 

As GHP expanded its capabilities, its performance has also grown significantly. GHP’s sales volume has grown more than tenfold from its spin-off amount of 700 million KRW to an impressive 7.9 billion KRW last year. This year, GHP is expected to achieve sales up to 8.9 billion KRW. Last year, the company recorded 300 million won in both operating profit and net profit. GHP also expects to operate 19,744 rental housing units this year.

 

◇Signing MOU with Thrive Senior Living..."Leading Qualitative Growth in the Domestic Market”

 

GH Partner is aiming towards taking a sizeable leap this year. To achieve this goal, GHP has signed a business agreement with Thrive Senior Living, a U.S. based senior housing company. Founded in 2008 in Atlanta, Georgia, Thrive has developed, owned, and operated more than $2.5 billion worth of senior housing since its inception.

 

While global investors have recognized the potential of the Korean senior housing market, they have been hesitant to invest due to the lack of a professional operating partner. For Thrive Senior Living, GH Partners, a first-generation player in the rental housing market with its proven record of expertise and growth, was the right fit for this MOU.

 

GHP’s expertise and deep understanding of the market can be seen in their research. For example, GH Partners publishes “Map of Rental Housing in the Seoul Metropolitan Area by Monthly Rent” on a semi-annual basis. Since its inception, GHP has also developed its own comprehensive PM software, known as SARA-M, and fully utilized the program in all its properties.

 

With the MOU signed, the two companies will look towards establishing their joint venture within the remaining calendar year. The collaboration hopes to bring a senior housing management platform to provide international-level management solutions, a transparent reporting system, and strict regulations. It is expected that the existing operational processes of GH Partners and SARA-M will be utilized in the development process.

 

Thrive Senior Living will also provide the senior housing units with the “Thrive” brand. While the initial focus of the joint venture will be to provide residential solutions for active seniors, Thrive’s expertise and brand power will be the blueprint to bring more comprehensive and higher quality housing and services to the Korean senior housing market.

 

“We are currently managing 40 rental housing units,” said a representative from GH Partners, “and the number of units will be expanded next month when we start operating the Sinpung Station Youth Housing in Yeongdeungpo-gu. We have signed an MOU with Thrive Senior Living and plan to finalize the process of establishing a joint venture with Thrive in the second half of this year,” he added.