Goldman, Sachs is negotiating to buy a part of J.E. Robert Cos., a real estate operator that invested and managed properties for Goldman's Whitehall series of funds, according to industry sources. Officials at both companies declined to comment.
The two institutions mutually decided to end the Whitehall relationship, said industry sources. Goldman reportedly wants to control the operating company, which has made more than $5 billion of property investments in the last five years for the Whitehall funds. Sources say J.E. Robert is considering launching a real estate fund that might have caused a conflict with the relationship.