(1888PressRelease)
October 05, 2007 - Goldman Sachs Group has announced plans to invest in the region of JPY200 billion ($1.7 billion) in Japanese property, it has been reported.
In an interview with Bloomberg, Toshinobu Kasai, managing director of Goldman's local real estate investments, predicted that a number of investors would follow suit on the back of predictions that real estate recovery will continue in Japan after a two-year rally.
"Capital inflows will likely increase as various funds continue to be attracted to the Japanese property market,'' Mr Kasai told the news agency.
Since 1998, Goldman has spent JPY2 trillion ($17.2 billion) on buying Japanese properties, which have included spa resorts, golf courses, cinemas and jewellery stores.
This is despite the fact that there have been three recessions in the Japanese property market since 1991, and that it was only earlier this year that commercial land prices rose for the first time since then.
However, Morgan Stanley have also shown a willingness to invest in Japanese real estate in recent months, and agreed in April to buy 13 hotels in Japan from All Nippon Airways for JPY281.3 billion ($2.4 billion) - the largest real estate purchase made in Japan by an overseas investor.
Further analysis of the Japanese real estate market could be provided by Aranca, an end-to-end provider of on-demand, custom investment, business and economic research.
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