An inside source from the Goldman Sachs Group revealed the investment banking titan’s intent to double its annual property investments in Japan to approximately 250 billion yen ($2.3 billion). This strategy is believed to be aimed at meeting the surging demand for data centers and logistics hubs in the region.
This expansion is believed to have been made possible due to Goldman Sachs leveraging the current low-interest rates to double down on its investments in the region. Currently, the New York City-based investment banking company spends in the range of 100 billion to 150 billion yen ($911 million to $1.4 billion) per annum on investments in the East Asian powerhouse. The majority of the expansion is expected to occur within the property market.
While the matter at hand is yet to be officially made public by Goldman Sachs, the Nikkei business daily was the first media outlet to report this development. According to the Nikkei, Goldman Sachs has been ramping up its property investment efforts worldwide.
Founded in 1869, Goldman Sachs is is one of the largest investment banking enterprises in the world by revenue. Currently, the firm’s investment banking activities account for approximately 21% of its total annual revenue, while its global markets activities make up a large portion of 37%.
