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GIC booked losses for investment in New York property Channel NewsAsia - Tuesday, January 12Send IM Story Print
GIC booked losses for investment in New York property
SINGAPORE: The Government of Singapore Investment Corp (GIC) has booked losses, believed to be in the tune of US$675 million.
This is following its exposure to the complex debt problems in one of New York’s biggest apartment complexes that may trigger a foreclosure on the property.
GIC’s spokesperson said in a statement to MediaCorp that "GIC recognized the losses following the ruling by the New York Court of Appeals in October 2009 which precipitated the default."
The GIC, however, did not disclose how much its exposure was in the apartment complex known as Stuyvesant Town and Peter Cooper Village located in Manhattan that is jointly owned by Tishman Speyer and BlackRock Inc.
The apartment complex owners were reported to have missed its loan payments to senior lenders last Friday.
According to wire reports, GIC held an estimated US$575 million in mezzanine debt issued by the owners of the apartment complex and another US$100 million in equity.
Default fears have been making its rounds since October last year when the Wall Street Journal (WSJ) reported that the property owners were running out of cash to service its debt payment of US$16 million per month.
The WSJ reported then that only US$33.7 million out of US$400 million were left in the owners’ reserves to service its debts, which was forecasted to be depleted by year—end.
A check at the Tishman Speyer website indicated that Stuyvesant Town is one of Manhattan’s largest apartment complex that sprawled over 61 acres of land.
The property was developed by Metropolitan Life Insurance Company in the mid—1940s.
The apartment complex was reported to have been bought by Tishman Speyer Properties and a unit of BlackRock for US$5.4 billion in October 2006 with the hope of raising rents and attracting higher paying tenants, according to WSJ.
Apart from the GIC, other equity investors include the California Public Employees’ Retirement System and US—based real estate investment company Gramercy Capital Corp
GIC booked losses for investment in New York property
SINGAPORE: The Government of Singapore Investment Corp (GIC) has booked losses, believed to be in the tune of US$675 million.
This is following its exposure to the complex debt problems in one of New York’s biggest apartment complexes that may trigger a foreclosure on the property.
GIC’s spokesperson said in a statement to MediaCorp that "GIC recognized the losses following the ruling by the New York Court of Appeals in October 2009 which precipitated the default."
The GIC, however, did not disclose how much its exposure was in the apartment complex known as Stuyvesant Town and Peter Cooper Village located in Manhattan that is jointly owned by Tishman Speyer and BlackRock Inc.
The apartment complex owners were reported to have missed its loan payments to senior lenders last Friday.
According to wire reports, GIC held an estimated US$575 million in mezzanine debt issued by the owners of the apartment complex and another US$100 million in equity.
Default fears have been making its rounds since October last year when the Wall Street Journal (WSJ) reported that the property owners were running out of cash to service its debt payment of US$16 million per month.
The WSJ reported then that only US$33.7 million out of US$400 million were left in the owners’ reserves to service its debts, which was forecasted to be depleted by year—end.
A check at the Tishman Speyer website indicated that Stuyvesant Town is one of Manhattan’s largest apartment complex that sprawled over 61 acres of land.
The property was developed by Metropolitan Life Insurance Company in the mid—1940s.
The apartment complex was reported to have been bought by Tishman Speyer Properties and a unit of BlackRock for US$5.4 billion in October 2006 with the hope of raising rents and attracting higher paying tenants, according to WSJ.
Apart from the GIC, other equity investors include the California Public Employees’ Retirement System and US—based real estate investment company Gramercy Capital Corp
