GIC incurs losses on New York property project

The Government of Singapore Investment Corporation (GIC) confirmed that it incurred losses from a prime New York real estate project, after American owners missed payment of their debt.

GIC is believed to have written off more than $798 million (US$575 million). It confirmed that it “recognized the losses” on its investment in 2009 on Manhattan's Peter Cooper Village and Stuyvesant Town, two huge housing apartment blocks purchased for US$5.4 billion.

GIC did not reveal the exact losses it incurred.

The owner, a joint venture company led by Tishman Speyer Properties and a BlackRock unit, missed the US$16 million bond payment in January 8 to its lenders, who have started their default process.

It was understood that GIC had written off its losses, which was estimated to be around US$100 million to US$200 million in equity and US$575 million in debt.

Property investments made up 12 percent of GIC’s asset mix as of its last report that ended 31 March 2009.