The Australian, 24 Oct 2008, MARTIN COLLINS: John Durie
THE Singaporean Government's decision to invest up to $600 million in GPT marks the re-emergence of sovereign wealth funds.
SWFs seemingly hid for cover in the wake of the credit crisis.
The Singaporean Government's agreement to underwrite the GPT rights issue was obviously crucial to the $1.6 billion recapitalisation. The company's board should get some credit for doing the deal before it was too late.
Yes, the company is a basket case and a huge question mark hangs over the new management's ability to unscramble the eggs, but Peter Joseph et al have put their heads on the block.
We know the debacle that is GPT. Listed property trusts have slumped in value by more 45 per cent this year against the 35 per cent fall in the Australian share market. The big question now is what has happened to unlisted property values.
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