GIC Real Estate forms joint venture with Host Hotels & Resorts

GIC Real Estate has formed a joint venture with New York Stock Exchange-listed Host Hotels & Resorts to explore investment opportunities in Asia and Australia.

The partners have agreed to invest a maximum of US$600 million of equity in the joint venture.

Combined with the anticipated leverage, they will have a potential investment war chest of up to US$2 billion.

GIC will own 75 percent of the joint venture while Host will hold the remaining stake.

An affiliate of Host will provide asset management services and will earn fees for these services.

Host Hotels & Resorts has been described as the largest lodging real estate investment trust and one of the largest owners of luxury and upscale hotels.

GIC Real Estate is the real estate investment company of the Government of Singapore Investment Corporation. – CNA/ms

Source : Channel NewsAsia – 25 Mar 2008

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