GIC lost SGD925 Million on NY project!

[Nooch]

GIC lost on NY project
Owners of huge housing complex in Manhattan default on debt payment
By Robin Chan

THE Government of Singapore Investment Corporation (GIC) has suffered losses investing in a prime New York property project after the American owners defaulted on a debt payment last Friday.

The exact size of the hit has not been disclosed but GIC is said to have invested a total of US$675 million (S$925 million) in Manhattan's Stuyvesant Town and Peter Cooper Village.

It confirmed to The Straits Times yesterday that it had 'recognised the losses' on its investment last year.

The combined enormous housing apartment complex was bought for US$5.4 billion by a venture led by Tishman Speyer Properties and a unit of BlackRock, a private equity powerhouse.

The owners missed a payment of about US$16 million to lenders last Friday, a step that triggered the process to default.

A GIC spokesman said yesterday that it 'recognised the losses following the ruling by the New York Court of Appeals in October 2009 which precipitated the default'. There was no further comment.

So tat means wat? Our CPF can cash out only at age 99??

[Frogmen]

There's more to come. Is our wealth depleting?

[exxondus]

hope by time I can cash out CPF, they would have recovered.

[Cessna]

Just my thoughts

Dun worry! If they can tell you bad news. They will surprised you with good news also. Lately shares has been soaring except today. Probably they will announce how much they made soon.

[DM101]

Dun worry! If they can tell you bad news. They will surprised you with good news also. Lately shares has been soaring except today. Probably they will announce how much they made soon.

They "make" only in local shares as they already the majority share holders in the 1st place... I think is a different picture for those overseas shares they bought.

Suspect they smartly lump up everything. I think if they release a breakdown of local and overseas "investments" I think the numbers will look veyr bad.

4.X% over a period of 20 yeras (or 15 years, cannot recall mentioned in ST b4) -the returns is miserable@!@!#21@$4 These "fun" managers....

[wind128]

No worries about your CPF... it's still far far away. I just hope they don't increase the taxes, GST and ERP charges to cover these losses.

[Watcha]

to think about how much temasek and GIC lost.

And those charities trying to raise a few millions with so many celebrities, high profile people, school children. it's a joke.

the losses will last for more than a century.

now we are motivated to live long long to see our money before kick the bucket.

[Watcha]

No worries about your CPF... it's still far far away. I just hope they don't increase the taxes, GST and ERP charges to cover these losses.

hopefully not. according to UBS report, in SG wages are low in relative to expenses. second most expensive city after tokyo.

[exxondus]

They "make" only in local shares as they already the majority share holders in the 1st place... I think is a different picture for those overseas shares they bought.

Suspect they smartly lump up everything. I think if they release a breakdown of local and overseas "investments" I think the numbers will look veyr bad.

4.X% over a period of 20 yeras (or 15 years, cannot recall mentioned in ST b4) -the returns is miserable@!@!#21@$4 These "fun" managers....

GIC does not invest in SGX. only overseas.

[Nooch]

I foresee 2 things:

1. ERP rates to go up or allocate more timing.
2. Increase in CPF Minimum age.

Someone has to pay for e losses u noe..

[DM101]

GIC does not invest in SGX. only overseas.

Thought they are shareholders of the listed local companies and banks - or is it Temasek... let me do some research.

WSJ dun lie I think...

http://online.wsj.com/article/SB125418236117447877.html

Anyway a 4+% return over a period of few decades is crap....