GIC - Government Investment Corporation of Singapore
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The Government of Singapore Investment Corporation Private Limited (GIC) is a sovereign wealth fund established by the Government of Singapore in 1981 to manage Singapore's foreign reserves. The Singapore government set up GIC in 1981 after it decided the bulk of the country's foreign exchange reserves should be invested in longer-term and higher-yielding assets. About 44 percent of GIC's assets are invested in equities, 26 percent in bonds and 23 percent in alternative assets such as real estate and private equity and the remaining 7 percent is held in cash at the end of March 2008.1

With a network of eight offices in key financial capitals around the world, GIC invests internationally in equities, fixed income, money-market instruments, real estate and special investments. GIC officially discloses that it's invested in over 40 countries with assets over $100 billion, though most analysts estimate that the figure is closer to $300 billlion. The Economist reported that Morgan Stanley had estimated the fund's assets at US$330 billion2.

GIC's investment portfolio is managed by its three subsidiaries: GIC Asset Management Pte Ltd (public markets), GIC Real Estate Pte Ltd and GIC Special Investments Pte Ltd (private-equity investments).

SUMMARY

Founded 22 May 1981
Industry Soverign Wealth Fund
Reported Assets In Management USD $100+ Billion
Website http://www.gic.com.sg

MANAGEMENT

SUBSIDIARIES

  • GIC Asset Management Pte Ltd (singapore)
  • GIC Real Estate Pte Ltd "GIC RE" (Singapore)
  • GIC Real Estate, Inc. (USA)
  • GIC Special Investments Pte Ltd (Singapore)
  • GIC Special Investments Pty Limited (Australia)
  • Reco Shahzan (M) Sdn Bhd (Malaysia)
  • Reco Hotels JV Private Limited
  • Reco Ruby Pte Ltd (PRC)
  • Reco Shine Pte Ltd (PRC)
  • Reco Pearl Pte Ltd (PRC, Hong Kong?)
  • Reco Bay Pte Ltd(Australia), a wholly owned subsidiary of Recosia Pte Ltd(Singapore).

KNOWN ASSETS

2008

  • The Westin Tokyo, Japan, 2008 - GIC acquired The Westin Tokyo, a 438-room, five-star hotel located in the heart of Tokyo, in close vicinity of the city's famous entertainment town of Roppongi and the shopping area of Shibuya/Harajuku streets from a special purpose company owned by real estate funds managed by Starwood Capital and a real estate fund managed by Morgan Stanley. The value of the transaction is not disclosed.3
  • 40% Stake Iso Omena, Finland, 2008 - GIC RE acquired 40 per cent of Iso Omena, Finland's 5th largest shopping centre, from Citycon for €131.6 million.4
  • Roma Est Shopping Centre, Italy, 2008 - JV for Roma Est Shopping Centre in Italy for €400 million with ING Real Estate and GIC Real Estate having equal stakes in the property.5
  • 4% of Citigroup Inc, USA, 2008 - GIC invested US$6.6 billion in Citigroup’s private offering of convertible preferred securities, upping it's stake from 0.3%, if converted to shares, to about 4% of the expanded capital base.6

2007

  • UBS AG, Switzerland, 2007 - GIC invested $11 billion Swiss Francs into UBS stemming from the liquidity crisis set forth by the Subprime mortgage loan crisis originated from the US.7
  • Kungshuset, Sweden, 2007 - GIC purchased Kungshuset, a prime office building in Stockholm, for SEK 1.13 billion (€123 million), on behalf of LaSalle Euro Growth Fund II.8
  • Acquisition of Planned Redevelopment Site for Myer Melbourne, Australia, 2007 - Participated in a consortium in an agreement with Myer Pty Ltd ("Myer") to acquire and redevelop the iconic Myer Melbourne property for a total of approximately A$1.1 billion. The percentage of GIC's involvement is not disclosed.9
  • 50% Westquay Shopping Centre, UK, 2007 - GIC acquired 50% stake of Westquay Shopping Centre for a cash consideration of £299 million after disposal costs.10
  • The Exchange, Tianjin, China, 2007 - GIC, in JV with Hong Kong Resort International Limited launched The Exchange, Tianjin, the only fully integrated, mixed use development in Tianjin of its kind, spanning a total of 190,000 square metres with two Grade A 36-storey office towers, a retail mall and a deluxe hotel. There is no valuation of GIC's involvement.11
  • City of London office campus, UK, 2007 - Bought City of London office campus in a transaction worth approximately £480 million.12
  • JV with Sumitomo Corporation, Japan, 2007 - GIC to invest up to JPY 150 billion (about US$1.3 billion) in large-scale retail properties across Japan over the next two years.13
  • 50% of Westfield Paramatta, Australia, 2007 - GIC RE’s affiliate acquired a 50% interest in Westfield Parramatta from ASX:WDC for A$717.5 million.14
  • Hawks Town, Japan, 2007 - Acquired Hawks Town, an area spanning 169,157 square metres, consists of Fukuoka Yahoo! Japan Dome, JAL Resort Sea Hawk Hotel Fukuoka and Hawks Town Mall. No figures are cited in the press release.15
  • 40% Share of The Metrocentre, UK, 2007 - Acquired 40% of The MetroCentre, which originally opened in 1986, is the UK's No. 1 regional shopping centre and is Europe's largest covered retail and leisure centre. GIC's 40% stake is at a gross consideration of £426 million.16

2006

  • 40% Stake in JV with Yanlord for Property Development, China, 2006 - Yanlord Land will take a 60% equity stake in the JV company with GIC RE’s affiliate holding the balance 40%17. The JV acquired a prime residential-commercial mixed use site in Hexi New Urban Area, Nanjing, Jiangsu Province, the PRC for RMB2.405 billion (approximately S$473 million), in a government land auction.18
  • 22.84% Stake in Beijing Capital Land Ltd - Acquired 376,222,000 new shares to be issued by the Company at a HK$2.80 (HK$1.053 billion or approx. SGD$194 million), increasing its stake to 22.84% of Beijing Capital Land Ltd, a property developer listed on the Main Board of The Stock Exchange of Hong Kong Limited (Stock Code : 2868 HK).19
  • 50 Georg-Brauchle-Ring (Uptown München Tower) and 56/58 Georg-Brauchle-Ring (Campus Building) Germany, 2006 - GIC purchased two buildings in Munich for €300 million.20
  • Disposed of 181 Queens's Road Central, Hong Kong, 2006 - Sold 181 Queen's Road Central, Grand Millennium Plaza, a 29-storey office building with a retail podium in Hong Kong's Central submarket for HK$ 2.375 billion (Approx. SGD$438 million).21
  • 29.12% Stake in Super Shine Co. Ltd, China, 2006 - GIC purchased 120 million shares, acquiring 29.12% of Super Shine Co. Ltd, a property developer listed on the Shenzhen Stock Exchange (Stock Code : 000608).22

2005

  • Two residential Projects, China, 2005 - GIC expanded its residential investment platform with China Vanke in China. GIC RE, through its affiliate, recently acquired a 51% stake in Shenyang Vanke Tander Real Estate Co., Ltd (Shenyang Vanke) and signed an agreement to acquire a 40% stake in Wuxi Vanke Real Estate Co.23
  • Oakwood Apartments Roppongi Central, Japan, 2005 - GIC acquired a 69-unit Oakwood Apartments Roppongi Central, in Tokyo's chi-chi Roppongi district. The press release also discloses GIC's investment of (JPY?)$1 billion in ProLogis Japan Properties Fund.24
  • InterContinential Hotel Paris, France, 2005 - Acquired a 100% freehold interest in the InterContinental Hotel Paris ("Hotel") for €315 million.25
  • 80% Stake in Prologis Property Fund II, Japan, 2005 - GIC Real Estate Invests US$600 million for 80% Stake of Prologis Property Fund, resulting in a maximum total investment capacity of about US$3 billion. Combining both Fund I and II, the joint venture's total investment portfolio could potentially reach US$4.3 billion (473 billion Yen), which will allow for a back of an envelope calculation of GIC's total involvement in these funds.26
  • Royal Pines Resort, Australia, 2005 - One of the largest developments of its type in Australia comprising a 330 room hotel, comprehensive convention facilities, a 27 hole championship golf course and other leisure facilities, and a substantial residential development and land bank on 200 hectares.27
  • Chifley Tower and Plaza, Australia, 2005 - Acquired Chiefley Tower within Sydney's CBD, a landmark Sydney property comprising 40 levels of premium office space, an integrated retail component over three levels and basement parking for 363 cars.28
  • Three Serviced Apartments, Japan, 2005 - Acquired a 100% interest in a portfolio of three serviced apartments (Oakwood Residence Akasaka, Oakwood Residence Aoyama and Oakwood Apartments Shirokane) from Colony Capital in Japan in excess of ¥12 billion.29
  • 50% Stake of Prudential's Economic Interest in Bluewater Shopping Centre, UK, 2005 - For an aggregate consideration of £318 million, involving 45% of the shopping centre and certain other rights with relation to Lend Lease.30
  • 70% JV with UNITE Group Plc, UK, 2005 - £350 million joint venture with UNITE Group Plc to develop and operate student accommodation in the capital cities of London, Edinburgh, Dublin and Belfast. GIC owns 70% of the JV, translating to an investment of £245 million.31
  • JV to acquire portfolio of 73 Hotels in United Kingdom for £1 billion, UK, 2005 - The portfolio includes 73 hotels comprising 12,841 rooms, consist of 4 Crowne Plaza hotels, 68 Holiday Inn hotels and 1 Express by Holiday Inn hotel, located in London and throughout the UK, including the 900 room Holiday Inn Forum in Kensington and the Crown Plaza at Heathrow airport. The percentage of GIC's involvement is not disclosed.32
  • Aeon Sendai Tomiyacho Shopping Mall, Japan, 2005 - Acquired a suburban shopping mall in Tomiyacho, a satellite city in Kurokawa-gun, Miyagi Prefecture. Tomiyacho is about 20 minutes drive from Sendai, the governmental and economic center for the Tohoku region in Japan.33
  • Formation of AMB-SGP Mexico LLC, Mexico, 2005 - GIC Real Estate Inc. invested in a JV worth US$700 million in distribution facilities in targeted markets in Mexico. The percentage of participation in the JV is not disclosed in the press release.34
  • 40% stake in HDBCorp's JV, China, 2005 - GIC will initially investing in a joint venture by HDBCorp, funding 40% of US$75 million (US$30 million) on township developments in China.35
  • JV Funding with Pramerica, 2005 - GIC invested £65 million in joint venture funds with Pramerica Real Estate Investors to build and own assisted living communities in the United Kingdom and Germany.36
  • Jusco Mall, Malaysia, 2005 - Valued at RM 95 million, the agreement is to develop a three-storey shopping centre in the integrated township of Seremban 2, which will be leased to operate as a Jusco department store. Seremban 2 is a 3,800-acre township located 4km southwest of the existing Seremban town on the opposite side of the North-South highway.37

2004

  • Star Tower, Korea, 2004 - Star Tower is a landmark 45-storey office building in the heart of the Seoul Kangnam Business District (KDB), the largest office building in Korea with total gross floor area of approximately 212,500 square metres.38
  • 49% Interests of 12 Class A Buildings in 8 Cities, USA, 2004 - The 49% stake including Colgate Building on Park Avenue in New York City and 400 Castro Street in Mountain View, CA (Sillicon Valley). The remaining buildings situated in Chicago, Seattle and Greenwich (CT), but are not named.39
  • 40% Stake in Vanke Xin Cheng, China, 2004 - Acquired a 40% stake in Chengdu Vanke Property Co. Ltd, a subsidiary of China Vanke Co. Ltd, to develop Vanke Xin Cheng, a residential project in Chengdu, China.40
  • Shinagawa Seaside Towers, Japan, 2004 - Acquired a portfolio of 2 Class A buildings called Shinagawa Seaside East and West Towers located in the Shinagawa ward of Tokyo, Japan. The value of this acquisition is JPY42.5 billion. (Approximately S$550+ million).41
  • Johor Bahru City Square, Malaysia, 2004 - Acquired 70% interest in Johor Bahru City Square, a prime shopping centre located in the Johor Bahru CBD.42
  • Kolon and Mookyo Building, Korea, 2004 - Two 15-storey freehold office buildings, located in the heart of the Seoul CBD, they are close to major financial, commercial and government buildings. GIC also mentions owning Seoul Financial Center in it's press statement.43

2003

  • Park Hyatt Melbourne, Australia, 2003 - Acquired Park Hyatt Melbourne at the price of A$125.7 million, which includes a 675-bay carpark, situated in a historic precinct dominated by the Victorian State Parliament house, St Patrick’s Cathedral (Melbourne’s oldest) and the old Treasury Building.44
  • Mayne Health, Australia, 2003 - Mayne signed an agreement with a consortium including Ironbridge Capital Pty Limited, CVC Asia Pacific Limited, GIC Special Investments Pty Limited and Mayne's Hospitals management (the Buyers), for the sale of its entire Hospitals business in Australia and Indonesia. The total sale price for the hospital portfolio was $813 million.45
  • Mezzaine Loan to Strategic Hotel Capital, USA, 2003 - Loaned US$230 million secured by the equity interests in a 15-hotel portfolio owned by Strategic Hotel Capital, with a term of two years with 3 one-year extension options.46
  • 6-8 Boulevard Haussmann, France, 2003 - Owns 50% stake with of the completely refurbished, modern 9 storey office building with 25,000 square metres of net area, through a joint-venture with the vendor, a real estate investment fund of the AXA Group, managed by Axa Real Estate Investment Managers, who retains the other 50% interest.47

2002

  • ANA Harbour Grand Hotel, Australia, 2002 - Acquired ANA Harbour Grand Hotel for A$206.5 million. Also mentions owning (surpassing the acquision) of the Westin Sydney earlier the year.48
  • No. 1 Martin Place, Australia, 2002 - Acquired the hotel and retail components of the heritage listed No. 1 Martin Place at A$160 million.49
  • Site in Lujiazui District, China, 2002 - Acquired a site for US$42 million in Lujiazui District, the vibrant modern financial and business zone of Pudong, Shanghai. GIC RE propose to develop a 70,000 sq.m international Class A office building on the site. In the note, it also mentions owning The Exchange in Beijing and Tianjin Exchange.50

2001

  • Ipoh Limited, Australia, 2001 - The company owns the Queen Victoria Building, The Strand retail arcade and The Galeries Victoria, all in Sydney’s Central Business District. Other significant assets include a portfolio of ten properties in Leigh Street, Adelaide and The Old Bank Buildings in Wellington, New Zealand. The Offer values Ipoh at approximately $260 million.51
  • Seven high-end residential buildings, Japan, 2001 - Acquired a 100% stake in seven high-end residential buildings in the prime district of central Tokyo, namely in the Minato and Shibuya Ward, for JPY 14.5 billion (about S$217.5 million).52

2000

  • Menara Shahzan Insas, Malaysia, 2000 - Bought 70% stake of Menara Shahzan Insas, a 40-storey building is located at the junction of the 2 main roads (Jalan Raja Chulan and Jalan Sultan Ismail) within the heart of the KL Golden Triangle CBD for S$45 million.53
  • Grand Millennium Plaza, Hong Kong, 2000 - Acquired 15 floors of offices and 52 car-parking spaces in the High Block of the Grand Millennium Plaza in Hong Kong for HK$1.26 billion (about S$280 million)
  • Kawasaki Tech Center, Japan, 2000 - Acquired 100% stake in Kawasaki Tech Center in Greater Tokyo, an office-cum-data centre building in the city of Kawasaki for JPY 14.8 billion (about S$220 million).54
  • Seoul Finance Center, Korea, 2000 - US$400 million acquisition by global real estate firm is the largest ever foreign real estate investment in Korea.55

ANNUAL REPORTS

REFERENCES

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