Gic ipo

[cheekenpie]

Can buy?


GIC Real Estate eyes IPO of logistics business
by Ryan Huang [email protected]
05:55 AM May 27, 2010
SINGAPORE - The real estate arm of the Government of Singapore Investment Corp may list its logistics business in an initial public offering. This is according to media reports which had quoted unnamed sources speaking about the deal.

The listing, possibly in Singapore, will reportedly involve GIC Real Estate's Japanese assets, including ProLogis Holdings, which provides distribution facilities.

The IPO is estimated to be valued at between US$500 million ($704.3 million) and US$1 billion and it could take the form of an industrial real estate investment trust (Reit).

CIMB's regional economist Song Seng Wun told MediaCorp that "floating a Reit-like structure will enable GIC to raise funds for new investments, as well as earn fees from outside investors, following in the footsteps of sovereign funds such as Abu Dhabi and China Investment Corp. It will deepen the Reit segment in Singapore as well".

Observers speculate that the listing could take place later this year, depending on market conditions.

Some analysts believe the move is part of initial plans by GIC Real Estate to reduce its risk exposure to its large stake ProLogis.

GIC had bought the property funds of ProLogis in Japan and its China operations for US$1.3 billion two years ago.

However when contacted, a GIC spokesperson declined to comment.

GIC Real Estate ranks among the world's top 10 real estate investment firms.

It invests globally in real estate and real estate-related assets outside Singapore, with close to 200 investments in more than 30 countries.

Reports say that JP Morgan and Citigroup are among the banks leading the talks for the mandate.

 

[cheekenpie]

Or is it pure cash raising because fo this

GIC converts UBS notes, faces $5 bln paper loss
May 27th, 2010 | Author: Your Correspondent

Singapore’s biggest sovereign wealth fund, GIC, said it converted its UBS (UBSN.VX) notes into ordinary shares, suffering a paper loss of about $5 billion.

The Government of Singapore Investment Corp [GIC.UL] had invested 11 billion Swiss francs ($10.22 billion) in mandatory convertible notes in UBS to support the Swiss bank during the financial crisis.

GIC did not provide more details, but a filing it made to the U.S. Securities and Exchange Commission early last month showed the original conversion price would be 47.7 Swiss francs, two-thirds more than UBS’s last share price of 15.86 francs.

GIC had earned about 2 billion francs from a 9 percent coupon over the last two years, which partially compensated for the sharp erosion in UBS’ share price.

“GIC confirms the conversion,” a spokeswoman for the Singapore wealth fund said in response to Reuters’ queries.

The filing had said GIC would exchange the mandatory convertible notes for 230.7 million ordinary UBS shares on March 5. GIC would have a stake of 6.6 percent in UBS after conversion, making it the Swiss bank’s biggest shareholder.

GIC, led by Deputy Chairman Tony Tan, is becoming active again in global markets after its portfolio shrank by more than a fifth in its last financial year as it was hit by the financial crisis that drove down the value of its financial holdings.

A market recovery helped it recoup half its portfolio losses in March-September last year, and GIC recently profited from a well-timed sale of part of its Citigroup (C.N) stake after it converted its preferred shares into stock.

GIC’s recent investments have been diverse, ranging from the hotel industry and China property developer Longfor (0960.HK) to a videogaming firm, but are in line with a recent statement that it is not pursuing geographical targets.

Source: Reuters

 

[LonewolfAlfa]

cheng hu will say its only paper loss. must think long term.

 

[halsey02]

cheng hu will say its only paper loss. must think long term.

But when your retire...your hard earned blood sweat & tears money..is further, further, further away from your grasp..is that long term also???

 

[borom]

For those with CPF contributions/balance ,we do not seems to know how much of our CPF has being used up by GIC.

Would you still want to throw in your cash (whatever little that's left after paying for historical high property prices) into the fray?

However if can pay by CPF, then its an option for those who rather manage their own funds than leave it to the long term investors in GIC with their
track records in buying Citi, Morgan, UBS, Micropolis and that failed kindergarden in Oz.

 

[LonewolfAlfa]

But when your retire...your hard earned blood sweat & tears money..is further, further, further away from your grasp..is that long term also???

yes, the Con People's Funds is indeed for the long term.