GIC to buy Paulson resorts for S$1.8 billion

The Government of Singapore Investment Corp (GIC) is set to acquire a group of resorts owned by hedge fund Paulson & Co for the sum of US$1.5 billion (S$1.8 billion) after no competing bidders emerged for the bankrupt properties.

An auction for the properties was cancelled after no other bids were received, leaving GIC as the successful bidder, according to a filing yesterday in the United States Bankruptcy Court in Manhattan.

The sale comes after a joint venture that includes Paulson acquired eight resorts through a foreclosure last year. Five of the properties then filed for bankruptcy protection.

The resorts sought approval in August for an auction with GIC acting as the lead bidder. The Doral golf resort in Miami was sold earlier to US real estate magnate Donald Trump.

GIC, a creditor in the bankruptcy case, has agreed to buy the Grand Wailea in Hawaii, the Arizona Biltmore in Phoenix, the La Quinta Resort & Club in California, the Claremont resort in California, and property at the Doral, according to the court papers.

The bid includes cash and debt GIC is owed, known as a credit bid, according to court papers.

When contacted by TODAY, GIC declined to comment.

Source : Today – 7 Dec 2012

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