Goldman Sachs announced on the 10th that its institutional sector for alternative investments has acquired the 4-star Mercure Ambassador Seoul Hongdae, a hotel and mixed-use commercial facility located near Hongdae Station in the Mapo District of Seoul, through a real estate fund.
The Mercure Ambassador Seoul Hongdae, which has a total of 270 rooms, is operated by SEOHAN ENGINEERING & CONSTRUCTION, a subsidiary of the hospitality group SEOHAN, and belongs to the Mercure brand of the global hotel chain Accor. The lower floors of the hotel are planned to be utilized as flagship stores selling private brand products from major e-commerce companies.
Goldman Sachs explained that it decided to invest this time considering the high demand in the Hongdae area and changing consumer trends. Nikhil Reddy, the head of Goldman Sachs' Asia-Pacific real estate institutional sector, said, "This investment marks a milestone in the real estate investment market that Goldman Sachs considers strategically important in Korea," adding, "Due to its excellent location and a large floating population, it will provide long-term value to investors given the high demand for retail."
Established in 1991, Goldman Sachs' institutional sector for alternative investments has invested over $60 billion based on various strategies since 2012. Goldman Sachs has been offering investment banking services and various financial services to corporations and institutions in the Korean market since the 1970s, and it was upgraded to a branch providing comprehensive financial services after opening its Seoul representative office in 1992.