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GIC backs UK real estate debt program


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<h2 style="font-size: 14px; color: rgb(138, 33, 3); font-family: Arial, Helvetica, sans-serif;">The Government of Singapore Investment Corporation has agreed to underwrite

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aiya.. mai sian lah.. now GBP is so low.. good time to snap up English assets.. and in this case debts.

 

This is how our gov tied the safety rope around other countries necks...if they do something not in favor of us, then we can pull the rope.. Just like China.. now pulling their ropes on US/EU.

Edited by ShepherdPie
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wah lau... junior debt + financing non core and sub prime real estate... they better be making good returns for such high risk.

 

luckily the commitment is a few hundred million only. Maybe 1 week of our CPF contribution enough to fund it already.

 

 

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Turbocharged

erm... hope its not that someone saw that advertisement offering what $200,000 for 5 properties kinda nonsense on tv..

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Turbocharged

Lol n this Wat is reported. Billions invested elsewhere we also dunno.

 

no worries... we have hundreds of billions in reserves...

mostly 99% in foreign stocks and securities [grin]

 

i don't know...maybe gamble stake goes higher to quickly win back the losses?

they already said current baby boomers will make up of majority old people in the next 10-20 plus years.. when these oldies (me included) start to claim, boh money inside other than just papers from shares/bonds how?

 

increasing immigration is part of the plan, i think..

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wah lau... junior debt + financing non core and sub prime real estate... they better be making good returns for such high risk.

 

luckily the commitment is a few hundred million only. Maybe 1 week of our CPF contribution enough to fund it already.

 

Yup surprised why its just junior debt.

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Yup surprised why its just junior debt.

 

They must be given a high return rate and also convinced that the commercial market is on a recovery.

 

I hope the GIC guy who underwrote this deal is based in UK and understands the market well... cos the last i heard, core assets already very slow moving and non-core even worse.

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Any idea what's the performance of these non-core-locations assets?

I know retail is slumping in the UK.

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Any idea what's the performance of these non-core-locations assets?

I know retail is slumping in the UK.

 

well hold long enuff principal shld b ok considering UK is brink of recession valuation & yield is prob good spread of 10yr govies & risk free & current cost of debt. Their main risk is rising interest rates squeezing yield, hope by then got chance to flip for gain lor.

 

The real question is, how does the man on d street benefit from all this?

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Any idea what's the performance of these non-core-locations assets?

I know retail is slumping in the UK.

 

I know core properties are going for around 1000 psf. Effective yield is 4+ to 5%. Drapers garden (blackrock's HQ) was sold at this range last year. Other bldgs within the city center (west end office mkt, "tower corridor") are also asking around this range. Not a fantastic investment opportunity if you ask me.

 

UK is still in a slump so makes sense that good tenants will all flock to CBD where rents are quite depressed. This would leave the non core bldgs to be under pressure and take in lousier tenants and also cut rent.

 

brokers i spoke to have been telling me that they are forecasting a significant recovery in rents soon. Not sure if this is true, that's why I hope the GIC guy who signed this deal is based there and know what's happening on the ground.

 

 

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I know core properties are going for around 1000 psf. Effective yield is 4+ to 5%. Drapers garden (blackrock's HQ) was sold at this range last year. Other bldgs within the city center (west end office mkt, "tower corridor") are also asking around this range. Not a fantastic investment opportunity if you ask me.

 

UK is still in a slump so makes sense that good tenants will all flock to CBD where rents are quite depressed. This would leave the non core bldgs to be under pressure and take in lousier tenants and also cut rent.

 

brokers i spoke to have been telling me that they are forecasting a significant recovery in rents soon. Not sure if this is true, that's why I hope the GIC guy who signed this deal is based there and know what's happening on the ground.

 

Hopefully Laxfield knows what they're doing! Else will be Laxative Capital Management! :D

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