Bookmark & Share
GIC’s effort in raising its allocation in real estate to 9 to 13 percent of its portfolio is being hindered by the high asset values across the world, reported Business Times.
“That’s just a reflection of the market because asset values are at an escalated level. Given the size of the assets that we manage, it’s just difficult to move the needle,” said GIC chief investment officer Lee Kok Sun at the Asia Pacific Real Estate Association (APREA)’s AsiaPac Property Leaders Summit.
“At the same time we are also selling, because again it’s a reflection of the market. Being a disciplined investor, if we see that the values are above the intrinsic level, we should be selling.”
His statement was made in reply to an audience member’s question on why the fund continues to be under-invested in real estate.
Notably, real estate accounted for seven percent of GIC’s portfolio’s asset mix as at 31 March 2016, or unchanged from the previous year.
The Sovereign Wealth Centre puts the sovereign wealth fund’s assets under management at around US$353.6 billion (S$492.9 billion).
This article was edited by Denise Djong.
Related Articles:
Singapore real estate investment sales up 67.4% in Q1
Property deals in Singapore surged in Q1: RCA
Singapore office rents to stabilise, says Savills
Starhill Global REIT divests Tokyo property at 22.4% premium to valuation