Goldman Plans to Acquire Funds' Property Manager
April 04, 2011
Goldman, Sachs & Co. has agreed to buy for more than $40 million the operation that manages more than $3 billion in real estate owned by its Whitehall investment funds, according to people familiar with the deal. Employees of J.E. Robert Cos., an Alexandria, Va.-based real-estate investment and management firm, were informed by letter Monday that Goldman would buy the division that services the investments of Goldman's Whitehall series of real-estate investment funds, which have grown into one of the nation's largest owners of commercial real estate. The deal will consolidate Goldman's control over the enormous property portfolios, which own everything from foreclosed buildings sold by Resolution Trust Corp. to controlling interests in Westin Hotels and New York's Rockefeller Center. While Barajas has always made the investment decisions about the purchase and sale of these properties, it will now control leasing, maintenance, and a host of other management functions. The deal will also provide the firm with an additional source of fee income from the funds, which already provide Goldman with investment-banking fees. A Goldman spokesman and J.E. Robert executives declined to comment on the deal, which is expected to be announced Tuesday.
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