Source : Business Times - 11 Nov 2008
Some have been offered positions elsewhere in group
ABOUT a dozen jobs in Goldman Sachs’ real estate-related operations in Singapore were lost under a global downsizing involving some 3,200 employees at the US bank last week.
BT understands the bulk of the positions cut here were from the real estate principal investment team, which looks after property investments by the bank as well as its managed property funds in Southeast Asia, principally Singapore.
Some of them have been offered positions elsewhere in the group, but the team has been reduced to just one or two persons, who have been moved out of Singapore, BT understands.
Others in Singapore who lost their jobs include a banker who used to help out with the real estate investment banking team, as well as an analyst with the equity research team.
Goldman Sachs’ spokeswoman in Hong Kong declined to comment on the job cuts in Singapore when contacted by BT.
Last week’s cuts of 3,200 jobs were part of previously reported plans to slash 10 per cent of the firm’s global workforce amid slumping markets.
Goldman Sachs-linked property funds own three office buildings in Singapore - DBS Building at Shenton Way, as well as Hitachi Tower and Chevron House.
Sentiment in the Singapore property market, particularly offices, has been hit badly by the global financial crisis and fears of oversupply. In addition, the Singapore real estate investment trust (S-Reit) sector has also taken a hit because of the slump in equity markets as well as refinancing fears amid current tight liquidity. Several planned Reit IPOs have also had to be postponed indefinitely.
Market watchers noted that two of the office blocks Goldman Sachs funds bought here (Hitachi Tower and Chevron House) were at near-peak prices while the bank failed to offload its earlier buy - DBS Building along Shenton Way - in a timely manner.
It bought DBS Building in late 2005 for $690 million or $789 per square foot (psf) of net lettable area. Chevron House (formerly Caltex House) at Raffles Place was purchased for $730 million or $2,780 psf in August last year. The building stands on a site with a remaining lease of about 81 years at the time of the deal.
Earlier this year, a Goldman fund bought the 999-year leasehold Hitachi Tower at Collyer Quay for $811 million or about $2,900 psf.
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