Goldman Sachs is reportedly planning to expand its private real estate investment trust (REIT) in Japan to approximately JPY60 billion (US$583 million) by the end of March through its asset management arm.
Goldman Sachs Asset Management Tokyo real estate investment department head Hiroyasu Kaizuka told Bloomberg that REIT will acquire two office buildings in Tokyo and Fukuoka, on the southern island of Kyushu.
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The REIT, which started in August 2012 with JPY30 billion, plans to add about JPY4 billion of properties by the end of June, Kaizuka said.
Goldman Sachs seeks to manage JPY100 billion of properties in the three years from launch of the business.
According to an estimate by brokerage Jones Lang LaSalle, property transactions in Japan is expected to grow approximately 30% to nearly JPY5 trillion in 2014, compared to JPY4 trillion 2013.
"The market condition has turned around so quickly that the yield has become tight," the publication quoted Kaizuka as saying. "We won’t consider buying properties that will hurt the return."
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