“Goldman Sachs takes the risk of investing $100m in Moscow Offices”
Reuters and Russian financial paper, RBK Daily, report that Goldman Sachs is “bucking” the trend by continuing to recognise the investment opportunities available in Russia. I have already blogged about Goldman Sachs making “bitesize” investments in Russia in recent years, and this was confirmed once again with yesterday’s announcement that the European investment branch bought a 6% stake in the Russian company O1 Properties.
Despite their demonstration of confidence in the Russian market, Goldman Sachs opted for an “insurance policy” by ensuring the shares can be sold back to O1 Properties in July 2016 for at least the purchase price. This clause may, however, be elementary, as the real estate company is estimated by Cushman & Wakefield to hold 28% of Moscow’s growing office market.