MONDAY, APRIL 04, 2022
As per Rethinktokyo.com, on March 28th 2022, an announcement was made that US Corporation- Goldman Sachs had signed a Joint Venture Agreement with Sojitz. The aim of this partnership between these two firms, will be to purchase second hand apartment buildings, renovate them and then sell them off to institutional investors. The terms of the agreement state that- Sojitz will have a 25 percent stake in this partnership, while Goldman Sachs has a 75 percent ownership within this project. Sojitz, however, will be running the real estate projects regardless of being minority owners in this venture.
Sojitz’ pledge is to revitalize the residential market of Japan and they believe that this venture will also strengthen their bond with Goldman Sachs. The relationship and partnership between these firms is a match made in heaven! Sojitz brings an extensive networks as well as their new Urban Development’s deep insight into the Japanese residential market. Goldman Sachs will bring the financial muscle to ensure that all renovation projects are carried out smoothly and effectively. In this property development and renovation space, capital is key!
Through the partnership, the two firms aim to acquire $300 million in Assets, within the financial year of 2022, and from there on, $400- $500 million annually. If that’s not reaching for the stars, I don’t know what is!
This project is initially scheduled for commencement around the summer time of this year,2022, but all is pending on the regulatory approvals and certain protocols to be cleared.
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