Goldman Sachs—Leading a New Commercial Real Estate Venture

October 12, 2010 / Elizabeth Buckley, Commercial Property Analyst

Goldman Sachs Group Inc is venturing into commercial real estate and hires Jeffrey A. Barclay. The New York-based bank hired Barclay which is formerly from the ING Clarion Partners. Barclay will now lead the company’s new commercial real estate business in acquiring and managing core real estate properties in lower-risk deals in the United States.

Goldman Sachs—Leading a New Commercial Real Estate Venture

Core properties are those commercial real estate properties that are deeply leased and producing stable funds in contrast to rotating situations.

Barclay will manage the commercial real estate properties for the company’s asset management clients.

Eric Lane, Goldman Sachs’s Co-chief operating officers for investment-management division said that the company has high net-worth regulars, which are looking for good investments in several economic environments.

Lane also said that there is a smart opportunities in core-plus and core commercial real estate for the next middle term.

Jeffrey Barclay is said to start in November this year and will be reporting directly to Eric Lane.

Barclay was also a partner at Washington-based investment bank, Hamilton Securities before joining ING Clarion.

According to Andrea Raphael, spokeswoman for Goldman Sachs, Barclay was not available for any comments. He was also the one in charge with the investment sales at Jones Lang LaSalle, Inc.

A report from Financial Times last April stated that Goldman’s Whitehall Street International real estate fund had gone down the drain, and lost $1.8 billion of equity after some bad investments.

Goldman Sachs’s new commercial real estate venture will also focus on holding properties for longer-periods of leasing contracts, and generating more funds from rental rates, not from gaining further debts and price appreciation.

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