My intention of highlighting this article is not to put the government in a bad light. Unfortunately, that's how it will be construed. Please allow me to explain.
My intention is to highlight the principles that were used in entering this deal. Namely, their desire to profit and abject failure to account for the rent-regulated housing customs and politics.
True enough as the article writer points out, they did not understand it and it killed them. Our money.
Is such news broadcasted and debated in Parliament and the mainstream media?
Instead, we have the award-winning newspaper publishing jokes about smoking in Beijing and pork soup in Shanghai rivers.
Sometimes, I questioned whether or not the "team" from Singapore's GIC and/or Temasek Holdings have done their due diligence vis-à-vis the various "failed" investments.
Unfortunately, those 2 entities do not believe in publishing a report card on their wins and losses.
To me, if a deal is too good, why the Americans or others did not consider and invest?
Why would they ask the Singapore's GIC? Who are the other parties who have considered the same "deal" which the Singapore's GIC or temasek Holdings is considering? Why not ask what they are asking (range of $$), then consider whether the lower number is reasonable, otherwise, walk away, and may be the "seller" may call you.
For the sake of Singaporeans, the govt. of Singapore has be more transparent, granted they claim that transparency is detrimental to the SG dollar (only if they incurred more losses than what has been reported).
I have always posed this to many who asked me about investing in this business or that business:
"If it is so good, why do they wish to sell? Watch the business for a week? Analyse the regulatory environment, and if you do not have local knowledge or if you do not understand how and why re: assumptions for the cashflow projections, then no point wasting time to conduct a due diligence."
Caution: I am looking from the perspective of an insolvency practitioner re: break up value or liquidation value versus going concern value.
In addition, I am not one of the SAFOS, OMS or govt scholarship holders, and therefore, not as bright, but I have seen many deals gone bad or failed deals in Ontario, irregularities, including the former "BIMCOR" which was affiliated with the $5 billion pension fund for Bell Canada and Northern Telecom in the 1980's.