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Goldman Sachs launches Chinese infrastructure real estate joint venture

Published 10/24/2022, 04:37 AM
Updated 10/24/2022, 04:41 AM
© Reuters. FILE PHOTO: The Goldman Sachs company logo is seen in the company's space on the floor of the New York Stock Exchange, (NYSE) in New York, U.S., April 17, 2018. REUTERS/Brendan McDermid/File Photo
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By Selena Li

HONG KONG (Reuters) - Goldman Sachs (NYSE:GS) has launched a joint venture in China with local logistics company Sunjade in a bid to boost investment in Chinese logistics and infrastructure real estate assets, the U.S. bank said on Monday.

The bank is forming the new unit via its investment arm Goldman Sachs Asset Management, which has invested more than $50 billion globally in real estate businesses, according to a company statement.

It did not disclose the shareholding structure or capital commitment to the platform.

© Reuters. FILE PHOTO: The Goldman Sachs company logo is seen in the company's space on the floor of the New York Stock Exchange, (NYSE) in New York, U.S., April 17, 2018. REUTERS/Brendan McDermid/File Photo

The joint venture, which focuses on projects located in China's first-tier cities and surrounding areas, has invested in a 240,000-square-meter project with four institutional-grade warehouse assets located in Shanghai and its neighbouring area.

The U.S. bank said the new platform will benefit from China’s rising demand for new high-quality infrastructure assets, in particular institutional-quality warehousing space driven by e-commerce and the diversification of industrial requirements supported by government policies.

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