atans1

GIC NY Loss: US$100m more?

In GIC, Property on 27/01/2010 at 7:59 am

According to a NYT article, GIC may have invested US$100m more than our MSM reported.

“The Government of Singapore Investment Corporation, which made a $575 million secondary loan, and invested as much as $200 million in equity [note  ST etc report this as US$100m: 100% less], stands to lose all of that.”

But to be fair to GIC, in the immortal words of the character Chuck (played by Steve McQueen) in the Magnificent 7, “It seemed a good idea at the time”, when the seven cowboys realised they were up against an army of Mexican bandits.

“At the time, it looked like a sound investment,” said Clark McKinley, a spokesman for Calpers, the giant California public employees’ pension fund, which bought a $500 million stake in the property. “When the market tanked, we got caught.”

‘”Many of the other companies, banks, countries and pension funds — including the government of Singapore, the Church of England, the Manhattan real estate concern SL Green, and Fortress Investment Groups — that invested billions of dollars in the 2006 deal stand to lose their entire stake.”

‘This month, several of the secondary lenders sent letters to Tishman Speyer and BlackRock threatening foreclosure because of the default. The partners tried unsuccessfully to craft a new deal that would have involved them putting up “several hundred million dollars,” in return for restructuring the loans, according to one real estate executive briefed on the negotiations.”

Note GIC is one of the secondary lenders but it is not yet known if it was one the u/m poker players.

“The secondary lenders, he said, had “overplayed their hand” in the hope that they would get back some of their investment. Instead of being forced into bankruptcy, Tishman Speyer and BlackRock will walk away sometime after a new manager is in place.

‘This month, several of the secondary lenders sent letters to Tishman Speyer and BlackRock threatening foreclosure because of the default. The partners tried unsuccessfully to craft a new deal that would have involved them putting up “several hundred million dollars,” in return for restructuring the loans, according to one real estate executive briefed on the negotiations.”

Full article. Click graphic to see where exactly GIC put its $.

About these ads
  1. [...] housing is subsidised for middle class renters in certain areas. In fact GIC’s recent loss http://atans1.wordpress.com/2010/01/27/gic-ny-loss-us100m-more/ was the result of the courts overturning rent [...]

  2. [...] ‘But BlackRock’s most public and costly mistake—for its clients, at least—was its purchase of the iconic Manhattan housing complex Stuyvesant Town and Peter Cooper Village, a $5.4 billion deal that went into default in early January.” Remember GIC is an investor in this too. http://atans1.wordpress.com/2010/01/27/gic-ny-loss-us100m-more/http://atans1.wordpress.com/2010/01/24/gics-us675m-loss-juz-be-the-beginning/ [...]

  3. [...] BTW for the record, in January this year, NYT reported “The Government of Singapore Investment Corporation, which made a $575 million secondary loan, and invested as much as $200 million in equity, stands to lose all of that,” in an investment in NY City.http://atans1.wordpress.com/2010/01/27/gic-ny-loss-us100m-more/ [...]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 211 other followers

%d bloggers like this: