Goldman Sachs Invests $2 Billion. in BRIC countries

The Goldman Sachs investment bank, which has real estate investment worth $23.7 billion worldwide, will commence investing in the Russian real estate market. The bank is in the course of action of forming a $4-billion fund for real estate investments in the BRIC countries (Brazil, Russia, India and China). Approximately half of the money will go to Russia and, of that portion, two-thirds will be invested in Moscow.

 

The fund will be invested in mutually existing structures and development projects. In general, Western investors place seventy percent of their funds in existing buildings, which bring return of nine to ten percent yearly. Development projects promise returns of twenty to thirty percent, but the risks involved are high due to prolonged negotiations required with local authorities and missed construction deadlines.

Goldman Sachs’ competitor Morgan Stanley has been present on the Russian real estate development market since August 2006, when it bought a ten percent share in Rosevrodevelopment for $30 million. That company has a total of 2 million sq. m. in its portfolio.

2 Comments

  1. Posted April 15, 2008 at 1:03 am | Permalink

    Global financial services giant Goldman Sachs, which broke away from Kotak Mahindra Group in 2006, has lined up a slew of financial services in India – which includes an asset management company, primary dealership for securities, NBFC and private wealth management.

  2. Posted April 15, 2008 at 6:22 am | Permalink

    Goldman, Sachs & Co. Bank is a premier private investment bank, well established in the Swiss financial community and a member of the Swiss Stock Exchange. The Zurich office also houses a branch of Goldman Sachs International, providing equity derivative and institutional sales.

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