As we wrote in October:
As a plugged-in reader notes, Tishman Speyer’s led 2006 investment of $5.4 billion in Manhattan’s Stuyvesant Town and Peter Cooper Village continues to head south with all equity investors likely being wiped out.
Amongst those equity investors, the California Public Employees’ Retirement System (Calpers) to the tune of $500 million and the California State Teachers’ Retirement System (Calstrs) to the tune of $100 million.
That being said, “Tishman-Speyer apparently has very little skin in the game. The firm contributed just [$112 million] of its own money to the $5.4 billion purchase price and did not use any of its other properties as collateral.”
As the Wall Street Journal reported late last night:
A group led by Tishman Speyer Properties has decided to give up the sprawling Peter Cooper Village and Stuyvesant Town apartment complex in Manhattan to its creditors in the collapse of one of the most high-profile deals of the real-estate boom.
By some accounts, Stuyvesant Town is only valued at $1.8 billion now, less than half the value of its price. By that measure, all the equity investors—including the California Public Employees’ Retirement System, a Florida pension fund and the Church of England—and many of the debtholders, including Government of Singapore Investment Corp., or GIC, and Hartford Financial Services Group, are in danger of seeing most, if not all, of their investments wiped out.
We’re kicking ourselves for not putting the apostrophe “s” in “Speyer’s” in quotes.
∙ The California Connection(s) To Tishman Speyer’s Manhattan Flop [SocketSite]
∙ Tishman Venture Gives Up Stuyvesant Project [WSJ]