Goldman Sachs, Sojitz to launch residential investment platform in Japan

Goldman Sachs, Sojitz to launch residential investment platform in Japan

Tokyo-based company Sojitz Corporation and Goldman Sachs Asset Management are launching a new residential investment platform in Japan.

The companies have agreed to jointly establish a new company (Joint Venture/Sojitz 25% – GS 75%) to invest in residential properties in Japan.

Sojitz said it 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 (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, according to Sojitz.

With Japan’s financing costs remain extremely low compared to other countries, the market continues to present very attractive investment opportunities for international investors, the company notes.

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.