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GIC official: Wealth fund is underinvested in real estate holdings

SINGAPORE — Singapore sovereign wealth fund GIC is “underinvested” in property and is interested in transactions of scale, said GIC real estate president Goh Kok Huat.

SINGAPORE — Singapore sovereign wealth fund GIC is “underinvested” in property and is interested in transactions of scale, said GIC real estate president Goh Kok Huat.

GIC has about 7 per cent of assets in real estate, while it can invest 9 per cent to 13 per cent, said Mr Goh. Given its size, GIC is focusing on larger markets and “gateway cities”, he said.

“We would like to put up more money across the globe, but it really depends on whether we see those transactions that are interesting,” said Mr Goh. “We don’t have the compulsion to push money out through the door.”

GIC does not disclose the size of its assets under management, but the London-based Sovereign Wealth Center puts its total holdings at US$343 billion (S$483 billion).

GIC has been adding to its real estate holdings, buying a building next to Tokyo Station last year in a bet on rising real estate values in the city. GIC also purchased Blackstone Group’s 50 per cent stake in London’s Broadgate office complex in 2013 and was part of a group that acquired the headquarters space of Time Warner in New York City for US$1.3 billion.

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