Goldman Sachs Group is set to establish a new branch in Munich to further expand its reach in Germany, Bloomberg reported citing people privy to the development.

The bank is nearing a deal to rent an office space in Maximilianstrasse from next year-end, the unnamed people told the agency.

The office will accommodate around 50 staffs working in different segments, such as bankers to look after the technology, media and telecommunication industry as well as buyout companies, startups and family-led businesses, added the people.

The American investment bank also plans to house employees from its private banking and asset management units in the new office.

Confirming the move, a spokesman for Goldman Sachs told Bloomberg that Munich is “an important economic centre in Germany and a vibrant, multicultural and growing European hub in areas such as the technology sector and private equity industry.”  

The city of Munich has emerged as an alternate destination to Frankfurt, the main financial hub in Germany.

As part of its expansion in continental Europe following Brexit, Goldman Sachs Bank Europe has increased its workforce from 556 to 908 between 2020 to 2021, says data from the company’s annual reports.

Goldman Sachs Bank Europe is currently based in Frankfurt.

The spokesman added: “Frankfurt will remain our headquarters in Germany and continues to grow as we build out the franchise of Goldman Sachs Bank Europe SE locally.”

The latest development comes close on the heels of Goldman Sachs Asset Management (GSAM) being fined by the US Securities and Exchange Commission (SEC) for the breach of environmental, social, and governance (ESG) rules while handling some funds.