The hot Chinese real estate market is apparently too tempting for one major American investment bank to resist. Case in point: Goldman Sachs bought the 24-story Pidemco Tower in Shanghai for $107.6 million. The acquisition represents Goldman Sachs’ first venture into the Shanghai office market.
The property is located across from Shanghai’s waterfront district. Since it also faces the financial district, which is located across the river, Goldman could sell advertising space on top of the tower. That could generate additional revenue for the building.
The property has roughly 448,000 sq. ft. of office and commercial space. Goldman reportedly paid about $7,746 per sq. ft. for the property. That may sound like a hefty price, but commercial rents in Shanghai have doubled over the past three years.
Singapore-listed real estate firm CapitaLand Ltd. sold the property to Goldman Sachs. CapitaLand has developed many shopping centers along with retail and office properties on the Chinese mainland.