Goldman Sachs & Sojitz Corporation Establish New Company to Investment in Japan
Sojitz Corporation (hereinafter "Sojitz") and Goldman Sachs (which refers to The Goldman Sachs Group, including Goldman Sachs Co., Ltd.) have entered into agreement to jointly establish a new company for the purpose of investment in residential properties in Japan (total capital $15 million (Sojitz 25% - GS 75%)). Sojitz aims to contribute to the revitalization of Japan’s residential rental market by forming a strong partnership with Goldman Sachs. The partnership will leverage both Sojitz New Urban Development’s (hereinafter “SNUD”, a wholly owned subsidiary of Sojitz) extensive industry networks, deep insight in residential market, expertise in improving asset value via renovation for aged properties, and Goldman Sachs’ capability to bring in necessary capital. Through the partnership, Sojitz and Goldman Sachs target to acquire $300 million of assets in FY2022, and then $400-500 million annually thereafter. Despite the Covid-19 pandemic, Japanese residential sector showed strong resilience with occupancy remained stable and rents growth continued. With Japan’s financing costs remain extremely low compared to other countries, the market continues to present very attractive investment opportunities for international investors. In addition, SNUD’s strategy to improve tenant demand by renovating aged properties places less burden on the environment compared to re-construction, and aligns with investors’ interest in SDGs. The new company is scheduled to commence operations in the summer of 2022, subject to the completion of necessary regulatory approvals. Sojitz and Goldman Sachs aim to become key players in Japan’s residential sector, and targets to provide consumers with premium living spaces and investors with a wide range of investment opportunities.
Tags : Goldman Sachs Sojitz Corporation New Company Investment Japan Sojitz New Urban Development SNUD residential properties