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Thread: Kuwaiti firm still in talks over mega deal

  1. #1
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    Default Kuwaiti firm still in talks over mega deal

    March 24, 2008

    Kuwaiti firm still in talks over mega deal


    REVIEWING TERMS: GuocoLand might grant fresh options to Kuwaiti investment bank KFH for 97 units at the freehold Goodwood Residence, as the deal agreed on in December has lapsed.

    A MAJOR $818.4 million residential property deal that fell through recently could be revived.

    The potential buyer, Kuwait Finance House (KFH), said last week it was still in talks to buy the 97 units at GuocoLand's freehold Goodwood Residence.

    KFH said it had a positive view of the outlook for Singapore's property market.

    A fund to be managed by the Islamic investment bank had agreed on the deal last December.

    However, KFH did not exercise its purchase options, which lapsed, GuocoLand said on March 10. It also said the parties were in talks 'with a view to a grant of fresh options for units in the development'.

    Last week, KFH said it was still in talks with GuocoLand with respect to the 'terms of the purchase', which are being reviewed by both parties. Industry sources had speculated that KFH wanted out as the price was too high.

    KFH had done the deal at a median price of $3,200 per sq ft (psf), when nearby projects in the Bukit Timah/Newton Circus area were going for an average price of $2,500 psf or below.

    KFH said it was upbeat about Singapore, given the Republic's status as a financial hub, the integrated resorts and the introduction of events such as Formula One.

    'The current cautious sentiment driven by external factors will abate in due time and, as a global city, Singapore will remain an investment destination for international real estate investors,' KFH said.

    JOYCE TEO

  2. #2
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    Default Re: Kuwaiti firm still in talks over mega deal

    They will negotiate real hard to Guoco in the current situation.

  3. #3
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    Default Re: Kuwaiti firm still in talks over mega deal

    as long as they are confident of spore property.
    now the balls is in Guocoland court, how much they want to make from this deal.

  4. #4
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    sign of prices dropping further ?

  5. #5
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    Default Re: Kuwaiti firm still in talks over mega deal

    Quote Originally Posted by Unregistered
    sign of prices dropping further ?
    Not exactly. Just that Guccoland tried their luck earlier by overcharging our rich Middle East frens ($3200psf on average on the project against $2500psf average sold in the vicinity).

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    Quote Originally Posted by Unregistered
    Not exactly. Just that Guccoland tried their luck earlier by overcharging our rich Middle East frens ($3200psf on average on the project against $2500psf average sold in the vicinity).
    Wah! This isn't right leh.

    Obviously, everyone wants to make money. But we also need to have some ethics.

    Most importantly, we must strike a win-win with the other party.

    Our friend is buying in bulk. Guccoland isn't doing the right thing here man!

  7. #7
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    Default Re: Kuwaiti firm still in talks over mega deal

    Quote Originally Posted by Unregistered
    Wah! This isn't right leh.

    Obviously, everyone wants to make money. But we also need to have some ethics.

    Most importantly, we must strike a win-win with the other party.

    Our friend is buying in bulk. Guccoland isn't doing the right thing here man!

    If Guocoland is that bad, why they bother to talk again?
    Let the business parties to negotiate themselves.

  8. #8
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    Default Re: Kuwaiti firm still in talks over mega deal

    Quote Originally Posted by Unregistered
    If Guocoland is that bad, why they bother to talk again?
    Let the business parties to negotiate themselves.
    They also don't want to loose the option money. I think GUOCO will accept a more reasonable offer.

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    Default Re: Kuwaiti firm still in talks over mega deal

    Wall Street May Face $460 Billion Credit Losses, Goldman Says

    By Zhao Yidi

    March 25 (Bloomberg) -- Wall Street banks, brokerages and hedge funds may report $460 billion in credit losses from the collapse of the subprime mortgage market, or almost four times the amount already disclosed, according to Goldman Sachs Group Inc. Profits will continue to wane, other analysts said.

    ``There is light at the end of the tunnel, but it is still rather dim,'' Goldman analysts including New York-based Andrew Tilton said in a note to investors today. They estimated that residential mortgage losses will account for half the total, and commercial mortgages as much as 20 percent.

    Earnings and share prices at U.S. financial institutions tumbled in the past year as fallout from the mortgage crisis spread to other markets. Demand for mortgage-backed securities evaporated, leading to the collapse of Bear Stearns Cos., once that market's largest underwriter, and a Federal Reserve-led bailout by JPMorgan Chase & Co. earlier this month.

    Goldman's own share-price estimate was cut 3.7 percent to $210 at Fox-Pitt Kelton Cochran Caronia Waller. The research firm also reduced its profit estimates for the world's biggest securities firm for the rest of this year and all of 2009.

    Merrill Lynch & Co. had its 2008 profit estimates cut by 45 percent at JPMorgan on concern the third-largest U.S. securities firm by market value may disclose further writedowns on subprime mortgages. Merrill may report a total of $5 billion in additional losses on collateralized debt obligations, so-called Alt-A mortgages and commercial mortgages, New York-based analyst Kenneth Worthington said.

    Bank of America

    Bank of America Corp., the second-biggest U.S. bank by assets, was downgraded to ``sell'' from ``neutral'' at Merrill Lynch. The company, based in Charlotte, North Carolina, also had its earnings-per-share estimate lowered to $3.30 from $3.50 in 2008 and to $4.00 from $4.40 in 2009, analysts including New York-based Edward Najarian wrote in a note to clients today.

    Lehman Brothers Holdings Inc., the fourth-largest U.S. securities firm, had its share-price forecast cut 16 percent to $70 at Fox-Pitt. The brokerage's 2008 and 2009 profit estimates were also reduced.

    Goldman said the $460 billion in credit losses it foresees may ``result in a substantial tightening in credit conditions as these institutions pull back on lending to preserve their reduced capital and to maintain statutory capital adequacy ratios.''

    Credit-card loans, auto loans, commercial and industrial lending and non-financial corporate bonds make up the rest of the $460 billion in credit losses.

    Goldman, which has lost 17 percent this year on the New York Stock Exchange, rose 36 cents to $179.24 in composite trading at 11:50 a.m. Merrill fell $1.13 to $47.25, Lehman declined $2.16 to $44.48 and Bank of America dropped $1.47 to $40.98.

  10. #10
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    Default Re: Kuwaiti firm still in talks over mega deal

    Quote Originally Posted by Unregistered
    They also don't want to loose the option money. I think GUOCO will accept a more reasonable offer.
    Such a prime location in dist 10.Hope GUOCO will able to hold the original asking price of this freehold project because prime 60 yrs leasehold property in Hong Kong already asking @ 4000psf and above.

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