From The Australian:
IN less than a year, one of the world’s top 10 property investors, the Singapore-based GIC Real Estate (GIC RE), has lost more than $360 million in just two investments in Australia.
The losses stem from the collapse in the unit prices of GPT Group and Mirvac Group. GIC RE invested a total of about $585 million in these two listed entities.
With a property portfolio worth more than $3.5 billion in Australia, GIC has yet to crystallise potential losses in its direct property holdings in Australia.
Its losses from investment in listed entities in Australia have come as part of its $S50 billion ($51 billion) writedown across all GIC investments, including real estate.
The Singapore behemoth took up 300 million GPT securities at the issue price of 60c a piece in addition to a $250 million placement last October.
It has already acquired a 1.9 per cent stake in the trust at prices ranging from $1.96 to $1.45 a share.
GIC RE is now the single largest shareholder in GPT, with a stake of more than 13 per cent.
Read the full article here.
HELP keep the voice of TOC alive!
If you like this article, please consider a small donation to help theonlinecitizen.com stay alive. Please note that we can only accept donations from Singaporeans. Thank you for your assistance.Do you have a flair for writing? Volunteer with us. Email us your full name and contact details to theonlinecitizen@gmail.com
Another one bites the dust.
After the mammoth $58B loss, this $360M seems like a little peanut in the sea of massive writedowns.
It just irks me that our govt is still not coming clean with all the losses that GIC/TH has incurred so far, and without The Australian reporting, we would most likely be kept in the dark about this loss as well. And God knows what other losses are lurking behind.
Just imagine, $360M could have been used to help the disabled, senior folks, needy and retrenched.
$360 million ~= $1 million per day for a full year = $100 per day for 10,000 people over a year.
It is not clear, though, if GIC RE is hanging on to those investments (hence a paper loss of $360M) or it disposed of those investments (hence a real loss).
I sure hope (if it is a paper loss) that the long-term value of GIC’s investments ultimately justifies a rate of return greater than 4% (what we are getting as interest on our CPF funds) compounded over the whatever that long-term period is. Clearly, drawing on the principle funds of some CPF holders to pay interest to other CPF holders is not sustainable (not quite as extreme as Madoff’s ponzi scheme, but similar in nature methinks).
Just thought I’d let you know that the summary showed up as “In less than a year, GIC RE has lost more than $360 in just two investments in Australia.” on my RSS feed :)
GIC’s 2008 loss was S$50B and that is equivalent to S$136M a day.
aiyoyo
another elites -ve investment again, when can these elites stop?
not sure if these elites use their own pocket $, will they do likewise?
aiyoyo
Are these newly-informed LOSSES in addition to the last time what MM told us?
Looks like it is Really TIME!
What is the EXACT, Actual, Complete, Absolute, TOTAL Loss thus far ?
Anyone knows?
I am asking is there any other losses big and small not known to the people?
Or should we take what is released as the totality?
Some people have no shame – they are like the AIGs Sf singapore paying themselves rich while their ship is sinking
i think if the money that i lost do not belong to me i will not feel heart pain.
if the money is mine even if i lost $10 i will feel very painful.
What is there to be unfazed about if it is ah kong funds all along. If it is ah kong funds, you do not need to be panicky in the first place and at the same time you can wait out for a much longer term.
Losing money has become habitual, since we have lost so much in Citi, Merril Lynch.. $360M is peanuts.
it is OK, GIC as deep pockets….these type of small losses won’t bother them at all.
If the people have issue with them handling all these titanic sums of money,
would they not have voiced up their disapproval by way of …. long long away since decades ago till today?
Maybe disapproving voices here are the neglible minority? Else, how could the majority have accepted their handling all these years?
So, i do not see what is the use of asking for the truth and total losses and reserves and the keys. The system has been like this since decades ago.
I feel that this system is what the people wants.
#13 humpty -
Heh, I think it is more a case of a “system that people are too lazy to care about” more than a “system that the people want”. And of course, when things blow up in their faces …
There are good reasons for seeking transparency. It is a way for people involved (citizens as well as government) to see or detect potential problems early. We have smart people in the civil service, but IQ alone does not overcome dogma or simply a narrower view of an issue. All humans need others to highlight what they may not be paying attention to (or assuming).
If all the losses can wait up SINgaporeans to their senses, the losses are blessings in disguises.
For then SINgaporeans get to understand themselves that they have blindly given their trusts to the leaders, blindly follow and succumb to the system, blindly adore a ‘supreme’ leader and BLIND TO THEIR OWN GREEDS AND GREEDS OF THEIR PAY AND PAY MASTERS.
So, the fault is not totally with the Executives of the State, THE PEOPLE THEMSELVES HAVE BROUGHT ABOUT(caused) THE PRESENT SITUATION WHICH WILL BRING CALAMITY.
Apology,
the word ‘wait’ in Post #15 should read as wake.
Singaporeans got noone but themselves to blame.
That’s why Taiwanese Li Ang called Singaporeans stupid. I think he is absolutely right.
oh great! We lose our money again