Goldman Sachs' Petershill Fund Grabs Its First Stake In A Real Estate Management Firm
Goldman Sachs' Petershill private equity fund has acquired a minority stake in property management company Westbrook Partners. The company has about $11B in property under management in the United States, Japan and Europe.
Westbrook was previously owned entirely by Paul Kazilionis, who founded the company in 1994 following a stint at Morgan Stanley's real estate business. As part of the deal, Kazilionis has committed to remaining as Westbrook’s CEO for at least 10 more years, the Wall Street Journal reports.
The parties to the deal did not specify how much of a minority stake Petershill took, nor how much it paid.
The acquisition represents the first time that Goldman Sach's Petershill program, which has been taking minority positions in various middle-market North American firms since its launch in 2007, has acquired a stake in a company that specializes in real estate.
Also this month, Petershill took a minority 15% stake in private equity firm Harvest Partners. Like at Westbrook, the company's management has committed to remain in place.
Westbrook has experience with every commercial and residential asset class.
The company co-owns the Four Seasons tower in the Brickell neighborhood in Miami, and it recently bought the Union Square W Hotel in New York for $165M. Westbrook also recently sold the Wagner at the Battery, a Lower Manhattan hotel, for $147M.