GIC Real Estate
GIC Real Estate Pte Ltd (GIC RE) is a subsidiary of the Government of Singapore Investment Corporation (GIC), dealing wtih investments in the area of real estate. It began as a department of GIC in 1982, but now maintains seven offices in Singapore, London, New York, San Francisco, Seoul, Shanghai, and Tokyo, with roughly 150 staff members.
GIC RE describes itself as one of the top-10-ranked real estate investment firms in the world. It holds over 200 investments in more than 30 countries, including office, retail, residential, industrial and hotel properties, as well as other niche sectors such as senior and student housing,and sports and medical facilities.
In addition to assets that are held directly or in partnership with other investors, GIC RE invests extensively in indirect real estate vehicles such as funds, public and private corporate entities, real estate investment trusts (REITs) and real estate debt.
About GIC Real Estate Pte Ltd
Board of Directors
|Tony Tan Keng Yam||Chairman|
|Lim Hng Kiang||Director|
|Steven Jay Green||Director|
|Lim Siong Guan||Director|
|Ng Kok Song||Director|
|Seek Ngee Huat||Director|
|Seek Ngee Huat||President|
|Kwok Wai Keong||Global Head, Asset Management|
|Christopher Morrish||Regional Head, Europe|
|Lim Swe Guan||Regional Head, Investments, Asia Pacific|
|Muk Kin Yau||Regional Head, Investments, Asia Pacific|
|David Dickinson||Global Head, Research & Strategic Planning|
|Deanna Ong Aun Nee||Global Head, Finance & Accounting|
|Tan Chor Hwa||Global Head, Administration & Corporate Affairs|
|Ho Nyuk Chong||Senior Vice President, Asset Management Division|
Singapore (Headquarters): 168 Robinson Road 37-01 Capital Tower Singapore 068912 Tel: (65) 6889 8888 Fax: (65) 6889 6869
Seoul: 10th Floor, Seoul Financial Center 84 Taepyungro 1-ga Chung-gu Seoul 100-768 Korea Tel: (82) 2 726 3300 Fax: (82) 2 726 3318
London: 1st Floor York House 45 Seymour Street London W1H 7LX United Kingdom Tel: (44 20) 7725 3888 Fax: (44 20) 7725 3508
New York: Cityspire 156 West 56th Street 19th Floor New York, NY 10019 USA Tel: (1 212) 468 1900 Fax: (1 212) 468 1940
San Francisco: One Bush Street Suite 1100 San Francisco, CA 94104 USA Tel: (1 415) 229 1800 Fax: (1 415) 229 1812
Tokyo: Japan K.K. 10th Floor Shiodome City Center 1-5-2 Higashi-shimabashi Minato-ku Tokyo 105-7110 Japan Tel: (81 3) 3572 7188 Fax: (81 3) 5537 2208
Shanghai: 805 Azia Centre, 1233 Lujiazui Ring Road Shanghai 200120, PRC Tel: (86 21) 6165 1919 Fax: (86 21) 6165 1900
Kungshuset office building, Stockholm, Sweden
On 7 August 2007, LaSalle Investment Management announced it had sold Kungshuset, a prime office building in Stockholm, for SEK 1.13 billion (€123 million) to GIC Real Estate. The property has a lettable area of 17,211 square meters, including offices, retail and a cinema. It is multi-tenanted, with an average lease length of 6.5 years.
Myer, Melbourne, Australia
On 18 July 2007 GIC Real Estate, as part of a consortium including CFS Retail Property Trust, announced that it had with Myer Pty Ltd (“Myer”) to acquire and redevelop the iconic Myer Melbourne property for a total of approximately $950 million.
This Myer Melbourne retail property occupies two adjoining city blocks on Bourke and Lonsdale streets. Under the consortium arrangements, CFS Retail Property Trust, GIC RE and the Myer family will equally own the Bourke Street site while the Lonsdale Street site will be owned by CFX and GIC RE.
The redevelopment plans include a glass-domed cultural centre, environmentally friendly innovations,= and the potential for new office space.
WestQuay Shopping Centre, Southampton, UK
On 17 July 2007, GIC RE announced that it had acquired a 50% interest from Hammerson plc in the WestQuay Shopping Centre in Southampton for approximately £299 million. Hammerson and GIC Real Estate will each hold their respective 50% interests in WestQuay in a joint venture partnership, with Hammerson retained as asset manager.
On 31 December 2006, WestQuay's book value was £588 million, plus another £25 million per annum of net rental income. Opened in 2000, WestQuay was developed in a 50:50 joint venture between Hammerson and Barclays, with Hammerson acquiring the latter’s 50% interest in December 2004. The scheme provides 76,200 m² of retail accommodation anchored by John Lewis and Marks & Spencer.
The Exchange, Tianjin, China
On 29 June 2007 GIC RE launched The Exchange in Tianjin, China, together with Hong Kong Resort International Limited. The Exchange is the only fully integrated, mixed use development in Tianjin, spanning a total of 190,000 square metres with two Grade A 36-storey office towers, a retail mall and a deluxe hotel. It is located in a commercial area along Nanjing Road near the Yinkoudao Metro Interchange Station.
The Exchange consists of The Exchange Mall, one of Tianjin’s most popular shopping destinations, and The Exchange Tower 1, a Grade A 36-storey office Tower that is home to many multinational companies, including Citibank, Standard Chartered Bank, Maersk and IBM. Newer additions include a second office tower and the 22-storey deluxe Nikko Hotel.
Hotel Nikko Tianjin will be the flagship of Nikko Hotels International in China. Aside from providing 373 spacious rooms and suites, Hotel Nikko Tianjin has the city’s largest ballroom in the commercial district with a capacity of 750 square metres.
Tianjin is China's third largest municipality of the PRC, with a population of close to 11 million. Located southeast of Beijing, Tianjin has emerged as North China’s largest commercial, financial and industrial hub.
Merrill Lynch Financial Centre, London, England
On 20 June 2007, GIC RE announced the purchase of the flagship Merrill Lynch City of London office for approximately £480 million. In the deal, GIC Real Estate agreed to purchase Chapterhouse Holdings Limited whose primary asset is the Merrill Lynch Financial Centre (MLFC) at 2 King Edward Street.
The MLFC features two of the largest trading floors in Europe, a 150-seat auditorium, a dedicated client centre, and several amenities for the over 4,000 employees who work in MLFC and other nearby Merrill Lynch offices. The building has won a number of significant awards, including the 2002 BCO Best Corporate Workplace Award, the 2002 Stone Award for Interiors and the AIA London Chapter Design Award. MLFC has a net lettable area of approximately 550,000 square feet and is located in the City of London, close to St.Paul’s Cathedral, on land previously occupied by the Post Office covering the north side of Newgate Street from King Edward Street to Giltspur Street.
Joint Venture with Sumitomo Corporation, Japan
On 24 May 2007 GIC RE announced that it was forming a joint venture with the Sumitomo Corporation in order to invest in large-scale retail properties across Japan. The joint venture aims to invest up to JPY 150 billion (about US$1.3 billion) in all types of retail properties in Japan, including both completed and development projects. The joint venture will also acquire sub-performing assets and add value to them through effective management.
The target markets for the joint venture are the metropolitan areas of Tokyo, Osaka, Nagoya and other major cities. Sumitomo Corporation will be the asset manager for the joint venture and be responsible for sourcing, development and operations.
The joint venture has already successfully invested in several assets, including Mito Keisei Department Store in downtown Mito City in Ibaraki Prefecture, Hanshin Mikage Development Project in Kobe City, Hyogo Prefecture, Fuchu Katamachi Development Project in Fuchu City, Tokyo Prefecture, and Shonan Tsujido Development Project in Fujisawa City, Kanagawa Prefecture.
GIC RE has been investing in the Japanese real estate market since 1997, and its key assets in Japan include Shiodome City Center, Fukuoka Hawks Town, Shinagawa Seaside Towers, four Oakwood serviced apartment complexes, Aeon Sendai Tomiyacho Mall, and logistics facilities through a joint venture with ProLogis. GIC RE’s global portfolio of retail properties includes investments in MetroCentre in Gateshead, UK, Bluewater Shopping Centre in Kent, UK, Roma Est in Rome, Italy, Sunway Pyramid Mall in Malaysia, and Queen Victoria Building in Australia.
Sumitomo Corporation has extensive experience in retail investment, development and management in Japan. Their retail property management company subsidiary, Sumisho Urban Kaihatsu, currently manages over 10 retail properties, including major shopping malls like Odaiba Decks in Tokyo and Universal Citywalk in Osaka. Sumitomo Corporation also holds the operating rights for Barneys New York in Japan. In addition, the company owns the Summit Store Supermarkets and Sumisho Drug Stores, as well as stakes in several other large retail chains.
Joint Venture with the Westfield Group in Australia
On 30 April 2007, GIC RE announced it had acquired a 50% interest in Westfield Parramatta from the Westfield Group for AUD 717.5 million. The purchase is part of an AUD 1.4 billion new joint venture in with the Westfield Group in New South Wales, Australia. Westfield will act as the Property, Leasing and Development Manager of the centre.
Westfield Parramatta is a fully enclosed, five-level super regional shopping centre in the suburb of Parramatta in western Sydney. The centre is one of the largest in Australia with an area of approximately 140,000 square metres and contains major retailers such as David Jones, Myer, Kmart, Target, Woolworths, Coles, Greater Union Cinemas and approximately 500 specialty stores, with links to the Parramatta bus and rail interchange.
Hawks Town, Fukuoka City, Japan
On 12 April 2007, GIC RE announced the purchase of the Hawks Town commercial area for an undisclosed amount from Colony Capital.
Hawks Town, spanning an area of 169,157 square metres, consists of Fukuoka Yahoo! Japan Dome, JAL Resort Sea Hawk Hotel Fukuoka and Hawks Town Mall, and is managed by Hawks Town Corporation. Fukuoka Yahoo! Japan Dome is a multi-purpose indoor stadium with a 35,773- seating capacity. It is the home of the Fukuoka Softbank Hawks, one of Japan's top professional baseball teams. JAL Resort Sea Hawk Hotel Fukuoka is one of the largest hotels in Japan with 1,052 rooms, and is managed by JAL Hotels Co., Ltd.. Hawks Town Mall is an 81,445-square metre shopping centre consisting of 107 stores. In addition to shopping and dining, the Mall offers a wide array of facilities for entertainment and relaxation, including a natural hot spring, a large concert hall, movie theatres and an amusement centre.
Hawks Town Corporation, led by its Representative Director, Mr Toshio Masui of Colony Capital, will continue to manage the development.
MetroCentre, Gateshead, England
Joint Venture with Yanlord Land, China
On 23 November 2006, GIC RE announced that it was forming a joint venture with Yanlord Land Pte Ltd for the purpose of investing in property development projects in the People’s Republic of China.
Yanlord Land will take a 60% equity stake in the joint venture, and GIC RE’s will hold 40%. It is intended that the joint venture will invest in both residential and commercial development projects in different cities in the PRC.
On 28 December 2006 the joint venture announced that it had acquired a prime residential-commercial mixed use site in Hexi New Urban Area, Nanjing, Jiangsu Province, China, for RMB 2.405 billion (approximately S$473 million), in a government land auction conducted yesterday.
The site, numbered 2006G72, is located at the south of Hexi Avenue and east of Riverside Avenue in Hexi New Urban Area, Nanjing. The 306,126.5 square metres (“sqm”) site, excluding a site area of 47,000sqm for public facilities, will yield a potential gross floor area (GFA) of approximately 688,000sqm. There are plans for the public facilities to be built by the relevant government authority. The development is required to have not less than 20% of the total GFA to be built with the unit size less than 90sqm. It is a residential-commercial mixed use land grant.
Beijing Capital Land Ltd
On 27 October 06, GIC RE announced an agreement via its affiliate Reco Pearl Pte Ltd to raise its stake in the Beijing Capital Land Ltd company from 9.6% to 22.84%. Beijing Capital Land is a property developer listed on the Main Board of The Stock Exchange of Hong Kong Limited.
Reco Pearl Pte Ltd subscribed for 376,222,000 new shares to be issued by Beijing Capital Land Ltd, at a subscription price of HK$2.80 per share.
Upper München, Munich, Germany
On 2 August 2006, GIC RE acquired two new office buildings in Munich, 50 Georg-Brauchle-Ring (Uptown München Tower) and 56/58 Georg-Brauchle-Ring (Campus Building), from Hines for over 300 million Euros.
The two separate office buildings form part of the Uptown München office campus that was developed by Hines and completed in 2005. The five-building campus encompasses the tower plus four smaller campus buildings. Uptown München is located in the Olympic Park office area, a major, growing sub-market of Munich close to the historic city center, with good access to transportation links and amenities. The 38-story Uptown München Tower is a landmark building, being the tallest and one of the most attractive office buildings in the Bavarian capital. It is completely leased to O2 Germany, a leading telephone operator, for a fixed 15-year term. The Campus Building is fully leased to Adobe Systems, two local companies, and Hines.
With the acquisition of the Uptown München Tower and the last of the four Uptown München campus buildings, GIC RE became the biggest investor in Uptown München. According to advisers to the transaction, this was the largest single asset deal that had ever been signed in Munich.
181 Queen's Road Central, Hong Kong
On 23 May 2006, GIC RE announced the sale of 181 Queen's Road Central in Grand Millennium Plaza in Hong Kong to MGP Asia Fund II for HK$ 2.375 billion.
Grand Millennium Plaza is an office complex comprising the 53-storey Cosco Tower and the 29-story 181 Queen's Road Central. GIC RE purchased the latter in June 2000 and 15 out of 53 floors in Cosco Tower in October 2000. GIC RE continues to hold the 15 floors in Cosco Tower in its portfolio.
Super Shine Co., Ltd, China
On 17 April 2006, GIC RE announced the acquisition for an undisclosed amount of a 29.12% controlling stake in Super Shine Co., Ltd, a property developer listed on the Shenzhen Stock Exchange. The deal was completed via GIC RE affiliate Reco Shine Pte Ltd.
Reco Shine Pte Ltd subscribed for a total of 120 million new shares issued by the Super Shine Company and become its largest single shareholder.
China Vanke Co., Ltd, China
On 20 December 2005, GIC announced that it was acquiring a 51% stake in Shenyang Vanke Tander Real Estate Co., Ltd, and a 40% stake in Wuxi Vanke Real Estate Co., Ltd. Both Shenyang Vanke and Wuxi Vanke are subsidiaries of China Vanke Co., Ltd.
The Shenyang project is located on a site of about 312,000 sqm in the Heping district of Changbai. The land was acquired through a public auction in early 2005. The Wuxi project, named Glamorous City, is located on a site of about 962,000 sqm in the Binhu district of Wuxi. The land was acquired though a public auction in early 2004, and the first phase of the project was successfully launched in early 2005.
China Vanke is a leading residential developer in China. It was founded in 1984 and was listed on the Shenzhen Stock Exchange in 1991.
Residence buildings in Japan
On 08 Nov 2005, GIC RE announced that with the purchase of its fourth apartment building in Japan, its residence holdings had amounted to 218 units. The buildings purchased were the 69-unit Oakwood Apartments Roppongi Central, in Tokyo's Roppongi district, the Oakwood Residence Akasaka, the Oakwood Residence Aoyama, and Oakwood Apartments Shirokane. The latter three buildings were purchased in March 2005 for approximately ¥12 billion.
GIC RE also owns the Shidome City Center, Shinagawa Seaside Towers and Kawasaki Tech Centre, and has a $1 billion investment in the ProLogis Japan Properties Fund, which invests in high-quality logistics facilities in Japan.
InterContinental Hotel, Paris, France
On 08 September 2005, GIC RE announced that it had acquired the InterContinental Hotel Paris for €315 million. The hotel is located Rue de Castiglione in the heart of Paris. It is an international 5-star hotel with 438 guestrooms.
An agreement was also reached to rename the hotel the Westin Paris. GIC RE owns other hotel properties, including the Westin Sydney, the Park Hyatt Melbourne, and the Intercontinental Prague Hotel.
ProLogis Japan Properties Funds
On 01 September 2005, GIC RE announced that it was forming a strategic partnership with ProLogis in Japan for investment in the area of distribution warehousing facilities. GIC RE invested US$600 million (66 billion Yen) in equity for its 80% stake in the ProLogis Japan Properties Fund II, resulting in a maximum total investment capacity of about US$3 billion (330 billion Yen). GIC RE had previously worked with ProLogis to create the ProLogis Japan Properties Fund I in 2002. Combining both Fund I and II, the joint venture's total investment portfolio could potentially reach US$4.3 billion (473 billion Yen).
Through the partnership, the companies developed and acquired high quality distribution properties across Japan with a focus on the Tokyo, Osaka/Kobe and Nagoya regions. For both funds, ProLogis provides services such as property and asset management, property acquisitions and dispositions.
Chifley Tower & Royal Pines, Australia
On 26 May 2005, GIC RE announced that together with Morgan Stanley it was acquiring Chifley Tower and Plaza in Sydney and Royal Pines Resort on the Gold Coast from MID Australia Pty Ltd for an undisclosed amount.
Chifley Tower and Plaza is a Sydney property comprising 40 levels of premium office space, an integrated retail component over three levels and basement parking for 363 cars.
Royal Pines Resort is located on Queensland's Gold Coast and is 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.
Royal Pines Resort has been the venue for the Australian Ladies Masters Golf Tournament every year since 1992 and also hosts the annual Uncle Toby's Ladies Tennis Hard Court Championships as a lead-up event to the Australian Open.
Bluewater Shopping Centre, Kent, England
On 23 March 2005, GIC RE announced a joint venture with Prudential and PruPIM, both wholly owned subsidiaries of Prudential plc. According to the agreement, GIC RE acquired from Prudential a 50 per cent share of Prudential’s existing economic interest in Bluewater Shopping Centre, near Dartford in Kent for an aggregate consideration of £318 million based on market values as at 31 December 2004. These interests comprised a 35% share in the shopping centre and a potential share in a right of pre-emption with Lend Lease, to increase its share to 50% under certain circumstances.
Bluewater opened in 1999. Located in North West Kent Bluewater accommodates over 330 retailers within 1.6 million sqft (148,700 sqm) of retail, leisure and restaurant space.
Student accommodation with Unite Group, UK
On 13 March 2005, GIC RE announced the formation of a £350 million joint venture with The UNITE Group plc, the UK’s largest student landlord, to develop and operate student accommodation in the capital cities of London, Edinburgh, Dublin and Belfast. The venture will be owned 70% by GIC RE and 30% by UNITE.
Simultaneously with the formation of the venture, UNITE sold four of its existing completed assets in the capital cities, comprising 723 bed spaces, to the venture for £47.5 million. Three of the properties are located in London, and the other is in Edinburgh.
The venture's goal is to develop a £350 million portfolio of purpose-built student accommodation in the targeted cities over the next few years. UNITE operates the assets on behalf of the venture.
Intercontinental Hotel Group, UK
On 10 March 2005, GIC RE announced that together with Lehman Brothers Real Estate Partners and the Realstar Group it had acquired a portfolio of 73 hotels in the United Kingdom from the Intercontinental Hotel Group (IHG). The deal was valued at approximately £1 billion.
The 73 hotels consist of 4 Crowne Plaza hotels, 68 Holiday Inn hotels and 1 Express by Holiday Inn hotel, located in London and throughout the UK, adding up to 12,841 rooms.
The portfolio continues to be managed by IHG under long term management contracts; the consortium agreed to invest a further incremental £21m for capital improvements. Lehman Brothers and Realstar will asset manage the portfolio on behalf of the consortium.
Aeon Sendai Tomiyacho Shopping Mall, Japan
On 18 February 2005, GIC RE announced the 100% acquisition of the Aeon Sendai Tomiyacho Shopping Mall from Aeon Co. Ltd. in Japan. The mall was then leased back to Aeon Co. Ltd following the purchase. Aeon Co Ltd, which operates the Jusco chain of stores, is one of the largest shopping mall operators in Japan.
The mall is located 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. Sendai is approximately 300 kilometers (180 miles) north of Tokyo. The mall consists of a three-story retail mall and four small single-storey stand-alone buildings. The total gross floor area is 57,291 sqm on a site area of 70,838 sqm. The mall comprises two retail floors and car parks on the third floor and rooftop.
AMB-SGP Mexico, LLC
On 2 February 2005, GIC RE announced a joint venture with AMB Property Corporation, a global developer and owner of industrial real estate, to invest in distribution facilities in targeted markets in Mexico. The venture is named AMB-SGP Mexico, LLC.
The stated primary investment focus of the venture is to purchase stabilized industrial distribution properties upon completion of development by AMB and its local market partner, G. Acción. At the time of the announcement, AMB operated approximately US$2.6 billion in assets owned through private capital joint ventures. When fully invested, AMB-SGP Mexico was projected to add approximately US$700 million to assets in AMB’s co-investment joint ventures.
Total equity committed to AMB-SGP Mexico by GIC RE was US$200 million; AMB contributed US$50 million in equity to the venture, representing a co-investment level of approximately 20%. At closing, AMB-SGP Mexico owned three properties comprising eight buildings totaling 1.3 million square feet in Mexico City and Guadalajara.
HDBCorp International Pte Ltd, China
On 24 January 2005, GIC RE announced that together with Wuthelam Holdings Pte Ltd it had entered into an agreement with HDB Corporation Pte Ltd to invest in its wholly owned subsidiary HDBCorp International Pte Ltd (HCI) to jointly develop township projects in major cities in China. With a share structure of 40:30:30 among GIC RE, HDBCorp, and Wuthelam, the joint venture planned to initially invest US$75 million in township developments in China in the next few years. At the time of the announcement, HCI currently has a joint-venture township project with Keppel Land in Chengdu, the capital of Sichuan Province.
HDB Corporation (HDBCorp) is a Singapore-based provider of integrated urban planning and development services.
Pramerica Real Estate Investors
On 14 January 2005, GIC RE announced that they had agreed to invest £65 million in joint venture funds with Pramerica Real Estate Investors to build and own assisted living communities in the United Kingdom and Germany. The homes will be operated by Sunrise Senior Living, Inc.
Pramerica Real Estate Investors' UK and German Joint Ventures with Sunrise Senior Living, Inc. at the time were estimated to be in excess of £450 million and £230 million respectively, with eight sites under development in the UK and five sites in Germany.
Jusco Mall, Seramban 2, Malaysia
On 12 January 2005, GIC RE announced that it was acquiring a 100% interest in Swiss Advanced Technology Institute (SATI) for about RM 95 million from developer RB Land Sdn. Bhd. Through SATI, GIC RE intended to continue development on a three-story shopping centre in the integrated township of Seremban 2, which will be leased to Aeon Co. Bhd. to operate as a Jusco department store.
Seremban 2, RB Land’s flagship development, is a 3,800-acre township located 4km southwest of the existing Seremban town on the opposite side of the North-South highway. The township was launched in 1996 and is a 40 minutes drive from Kuala Lumpur. The shopping centre occupies 51,183 square metres of prime land in the Seremban 2 township, with a gross floor area of approximately 62,700 square metres.
From 2002 on, GIC RE held a 30% strategic stake in RB Land Sdn. Bhd.
Star Tower, Seoul, South Korea
On 28 December 2004, GIC RE announced the acquisition of the 45-story Star Tower office building in the Seoul Kangnam Business District for an undisclosed amount from Lone Star Funds. At the time of the deal, it was the largest office building in Korea, with total gross floor area of 64,300 pyung (approximately 212,500 square metres).
Strategic alliance with Tishman Speyer Properties, USA
On 1 December 2004, GIC RE announced that it was forming a strategic alliance with Tishman Speyer Properties. As part of the agreement, GIC RE sold a 51% interest in nine class A office buildings located in seven U.S. cities to TSP and GIC RE acquired a 49% interest in 2 premier office buildings owned by Tishman Speyer - the Colgate Building on Park Avenue in New York City and 400 Castro Street in Mountain View, CA in the heart of Silicon Valley.
The resulting portfolio, which is owned 51% by TSP and 49% by GIC RE, consisted of twelve Class A office buildings in eight U.S. cities including New York, San Francisco, Chicago, Seattle and Greenwich (CT). The portfolio is managed and leased by TSP.
Chengdu Vanke Property Co. Ltd, China
On 25 November 2004, GIC RE announced the acquisition of 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.
Vanke Xin Cheng project is located in the south-east of Chengdu city. With a land area of 308,000 sqm and plot ratio of 2.3, the total Gross Floor Area (GFA) amounts to 708,400 sqm. Vanke acquired the piece of land through a public auction organized by Chengdu Municipal government.
Shinagawa Towers, Tokyo, Japan
On 03 June 2004 GIC RE announced the acquisition of 2 Class A buildings called Shinagawa Seaside East and West Towers in the Shinagawa ward of Tokyo, Japan. The value of this acquisition is JPY 42.5 billion. Shinagawa East Tower is a 23-story building with 14 floors of office space, a 300 room hotel and some ancillary retail space. Shinagawa West Tower is an 18-story office building.
Johor Bahru City Square, Johor Bahru, Malaysia
On 31 May 2004, GIC RE announce it was acquiring a 70% interest in Johor Bahru City Square, a shopping centre located in the Johor Bahru. The acquisition was made through a joint-venture with Merit Properties Sdn. Bhd., which took up the remaining 30% interest. Merit Properties Sdn. Bhd. is owned by Majlis Bandaraya Johor Bahru, Pelangi Bhd., Kuok Brothers Sdn. Bhd., and Lee Rubber Sdn. Bhd..
Johor Bahru City Square, which opened in February 1999, is a 5-story shopping centre with approximately 388,000 square feet of net lettable area.
Kolon & Mookyo Buildings, Seoul, South Korea
On 15 January 2004, GIC RE announced the acquisition of two office buildings -- the Kolon Building and the Mookyo Building -- in Seoul for an undisclosed amount from Morgan Stanley Properties Korea.
Kolon and Mookyo are both 15-story freehold office buildings. The two buildings are located next to the Seoul Financial Center, which is also owned by GIC RE.
Park Hyatt Melbourne, Australia
On 11 August 2003, GIC RE announced the purchase of the Park Hyatt Melbourne hotel from Lustig & Moar Group for AUD 125.7 million.
The Park Hyatt Melbourne is situated in a historic precinct dominated by the Victorian State Parliament house, St Patrick’s Cathedral (Melbourne’s oldest) and the old Treasury Building. The hotel has 240 oversized guestrooms and suites.
The Park Hyatt Melbourne was the latest entry into the luxury hotel market in Australia for GIC RE, which bought the Westin and Shangri-La in Sydney in 2002.
Strategic Hotel Capital, USA
On 21 March 2003, GIC RE announced that it was making a USD $230 million mezzanine loan investment secured by the equity interests in a 15-hotel portfolio owned by Strategic Hotel Capital. The mezzanine loan was for a term of two years with three one-year extension options.
6-8 Boulevard Haussmann, Paris, France
On 17 March 2003, GIC RE announced it had acquired a 5o% interest in the office building located at 6-8 Boulevard Haussmann in Paris. The acquisition was made through a joint-venture with a real estate investment fund of the AXA Group, managed by Axa Real Estate Investment Managers, who retains the other 50% interest.
6-8 Boulevard Haussmann, which was completely refurbished in 2001/2002, is a 9-story office building with 25,000 square metres of net area. AXA Real Estate Investment Managers (AXA REIM) was appointed as the asset manager of the property.
ANA Harbour Grand Hotel, Sydney, Australia
On 8 August 2002, GIC RE announced an agreement to purchase the ANA Harbour Grand Hotel for AUD $206.5 million. The ANA Harbour Grand Hotel Sydney at the time was the largest 5-star luxury hotel in Australia.
No. 1 Martin Place, Sydney, Australia
On 23 May 2002, GIC RE announced an agreement to buy the hotel and retail components of the property known as No. 1 Martin Place in Sydney from Grocon, a Melbourne based developer. At AUD $160 million, the deal represented the largest hotel transaction on the Australian property market thus far that year.
Built upon the original frame of the historic GPO building which was completed in 1887, No. 1 Martin Place is located in between George Street and Pitt Street and overlooking Martin Place. The entire development comprises an office tower, the Westin Sydney, the heritage retail precinct and a carpark.
The 31-story luxury 5-star hotel was managed by the Westin of Starwood. The hotel was voted the best deluxe hotel by the Australian Hotels’ Association in 2002.
Lujiazui District, Shanghai, China
On 25 February 2002, GIC RE announced the acquisition of a development site in the Lujiazui District of Pudong, Shanghai, for USD $42 million. GIC RE planned to use the site to develop a 70,000 sq.m international Class A office building.
Menara Standard Chartered, Kuala Lumpur, Malaysia
Ipoh Limited, Australia
On 14 September 2001, Reco Bay Pte Ltd, a wholly-owned subsidiary of Recosia Pte Ltd, announced its intention to make a conditional cash offer of $1.65 per share to acquire all the ordinary shares in Ipoh Limited. The offer valued Ipoh at approximately $260 million.
Based on Ipoh’s weighted average share price of $1.51 for the week ending 7 September 2001, the offer represented a premium of 14.0% to Ipoh’s weighted average share price for the week ending 7 September 2001 and a premium of 16.2% to Ipoh’s weighted average share price during the three months preceding 7 September 2001.
Reco Bay already owned a 31,842,941 share (20.24%) interest in Ipoh, through through its associated investment vehicle Reco Park Pte Ltd. Reco Bay is a real estate investment vehicle wholly-owned by Recosia Pte Ltd, an asset holding company which in turn is managed by GIC Real Estate Pte Ltd.
Ipoh’s core assets include 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.
Reco Bay secured a specific advance loan facility of AUD $220 million to fund its obligations under the offer.
Kawasaki Tech Center, Japan
On 23 Aug 2001, GIC RE announced the 100% acquisition of the Kawasaki Tech Center, an office and data centre building in the city of Kawasaki, for JPY 14.8 billion (about S$ 220 million). This transaction marked the first investment of this kind by GIC RE in greater Tokyo. The Kawasaki Tech Center is a 20-story building located in Kawasaki in the vicinity of Kawasaki train station.
Residential buildings, Tokyo, Japan
On 16 Jul 2001 GIC RE announced the acquisition of seven high-end residential buildings in central Tokyo for JPY 14.5 billion (about S$217.5 million). This transaction represented the first high-end residential property investment for GIC RE in Japan.
The seven high-end residential buildings, totalling 63 units, are located within two of the five central wards of Tokyo, namely Minato and Shibuya Ward. The average size of these units is about 200 sqm, and the average rent for these units at the time of the deal was around JPY1,000,000 to JPY 1,800,000 per month (S$15,000 to S$ 27,000).
This acquisition followed closely on the heels of GIC RE’s acquisition of a 100% stake in Shibakoen residential building, a 54-unit residential property purchased in Oct 2000 in the Minato ward for JPY 2.1 billion (about S$31.5 million).
Menara Shahzan Insas, Kuala Lumpus, Malaysia
In 23 November 2000, GIC RE announced an agreement to purchase 70% of Menara Shahzan Insas from Insas Berhad for RM 98 million (S$ 45 million). GIC RE used a wholly-owned Malaysian subsidiary, Reco Shahzan Sdn Bhd for the deal. Insas Berhad will retain the remaining 30% interest.
Built in 1989/90, the 40-story building is located at the junction of Jalan Raja Chulan and Jalan Sultan Ismail roads. As part of the plan to upgrade Menara Shazan Insas and reposition it as a prime Class A office property, both GIC RE and Insas Berhad planned to undertake a RM 30-50 million upgrading program.
The Menara Shahzan Insas deal marked GIC RE’s second investment into the Malaysian property market. Earlier in 2000, the firm concluded a RM 382 million deal to buy into a 25% stake in Sunway City Berhad and a 48% stake in the Pyramid Mall.
Grand Millennium Plaza, Hong Kong
On 15 Sept 2000, GIC RE entered into an agreement with New World Development to acquire 15 floors of offices and 52 car-parking spaces in the High Block of the Grand Millennium Plaza in Hong Kong. The deal was estimated at HK$1.26 billion (about S$280 million). Counting previous investments, the transaction raised GIC RE's stake to 55% of the gross floor area at the prime Grade A office blocks in the Grand Millennium Plaza development in 181-183 Queen’s Road, Central.
The Grand Millennium Plaza acquisition was GIC RE’s first foray into the Hong Kong office property market. In June 2000, GIC RE acquired the Low Block which comprises 23 floors of offices, a three-floor retail podium and 34 car-parking spaces, for HK$1.38 billion (S$307 million). It was the largest office investment transaction in Hong Kong since mid-1997.
Seoul Finance Center, South Korea
On 18 Jun 2000 GIC RE announced an agreement to acquire the Seoul Finance Center from Yoojin Tourist Co., Ltd., for USD $400 million, at the time the largest ever foreign real estate investment in Korea. The Seoul Finance Center is a Class A 30-story office building located in Seoul’s Central Business District.