Singapore firms feel impact following Japan earthquake, tsunami

15:12, March 14, 2011      

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Some of the Singapore companies operating in Japan have reported losses from the recent devastating earthquake and tsunami that hit northeastern Japan.

Global Logistic Properties (GLP), the real estate unit of sovereign wealth fund Government of Singapore Investment Corp (GIC), said on Monday that it has estimated the damage to its total portfolio of properties in Japan will be 38.8 million U.S. dollars, or 0.6 percent of the portfolio value of GLP in Japan.

The latest estimate is less than the previous expectation of 47.5 million U.S. dollars.

Nevertheless, the company said it will maintain the estimated loss of 10.8 million U.S. dollars in rental income.

Saizen Real Estate Investment Trust (Saizen REIT), a Singapore- based real estate investment trust with mainly a diversified portfolio of residential properties in Japan, is also expected to suffer damages.

In a statement filed with the Singapore Exchange, the company said all its staff in the Japanese cities of Sendai, Koriyama and Morioka are accounted for. But the property managers have not been able to reach and assess the conditions of all the company's properties due to disruptions to the transportation, electricity and telecommunications following the earthquake and the tsunami.

Of the six properties its managers have viewed so far, it is confirmed that they have sustained minor damage, according to preliminary reports. The company had a total portfolio value of some 460 million U.S. dollars, local television Channel NewsAsia said.

Both companies said they would continue to monitor the situation.

Shares of GLP were down by over a percent, while Saizen REIT was off by nearly 10 percent.

In a related development, Singapore Foreign Minister George Yeo said on Sunday that the Singapore economy would be affected by the earthquake and tsunami, too, either directly or indirectly.

They might even mean the start of a new period for the world, and there will be a lot of uncertainties given the losses from the disaster and the reconstruction work, he added.

Source: Xinhua

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