Goldman Sachs has agreed to acquire LCN Capital Partners for up to $410 million. The deal will strengthen its net-lease strategy in real estate investment and expand arrangements in which tenants bear rental costs.
Goldman Sachs Group plans to complete its second corporate acquisition in a week, as it seeks to expand its asset management business. The target is LCN Capital Partners, in a deal valued at up to $410 million. LCN focuses primarily on lease structures such as sale-leasebacks and triple-net leases.
Interest is growing in investments that combine real estate with corporate credit, driving increased participation by asset managers. As a net-lease investor, Goldman owns the properties, while tenants bear the costs of rent, taxes, insurance and maintenance.
The acquisition will enable Goldman to offer leases to corporate clients across a range of industries and strengthen the advantage of not having to hold real estate on its balance sheet. The funds will also become more accessible to investors exposed to tax burdens and inflation. Nackman suggested that demand was growing and said LCN had the scale to continue expanding.
Under CEO David Solomon, Goldman has been expanding its asset management business, and this will be its fourth acquisition in the past 12 months. Management has indicated that it will continue to seek opportunities.