January 11, 2010 / 10:25 AM / 8 years ago

UPDATE 1-GIC says booked loss from $675mln Stuyvesant investment

 * GIC says recognised losses after court ruling in Oct
 * GIC holds $100 mln in equity, $575 million in debt
 * GIC manages over $200 bln, 12 pct invested in property  (Adds details)
 SINGAPORE, Jan 11 (Reuters) - The Government of Singapore Investment Corp [GIC.UL] said on Monday it has already booked losses on its investment in Stuyvesant Town, given the New York apartment complex’s debt problems.
 “GIC recognised the losses following the ruling by the New York Court of Appeals in October 2009, which precipitated the default,” a spokeswoman for the sovereign wealth fund said in response to a Reuters query.
 GIC did not disclose its exposure or say how much it wrote off, although court documents indicate the Singapore fund held $100 million of equity and $575 million in mezzanine debt issued by the owner of the Stuyvesant Town/Peter Cooper Village complex in Manhatten. [ID:nN14268606]
 The complex, owned by a joint venture led by Tishman Speyer and BlackRock Inc (BLK.N), on Friday said it missed making a loan repayment, in a move that may trigger a foreclosure. [ID:nN08255533]
 GIC, estimated to be the world’s fourth largest sovereign fund with over $200 billion in assets, said in September its portfolio shrank by more than a fifth in the year to end-March but had since recouped over half the losses. [ID:nSIN485515]
 About 12 percent of the fund’s portfolio is in real estate.
 Stuyvesant Town is the largest apartment complex on Manhatten, housing around 25,000 residents on 80 acres of land. It was purchased for $5.4 billion in 2006 near the height of the U.S. housing market but is now worth around $2 billion.
 In October last year, New York’s top court ruled that the owners had wrongly tried to remove the apartments from New York City’s programme which limits rent increases, in a bid to get higher market-level rents.  (Reporting by Kevin Lim; Editing by Neil Chatterjee)    

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