glObal prOperty expert  On  CNA  last  mOnday commented:

JAPAN  prOpertIes  cOntinUe  tO  remaIn  DEPRESSED.

nO  UpsIde  In  the  near  term . . . .

sO  the  GIC  IPO  is  nOt  attractIve ? ? ? ? 

SME lender is Japan’s first bank failure in 7 years

TOKYO

The Financial Services Agency (FSA) has told the bank it cannot do any business for at least three days and must make efforts to protect existing depositors, the agency said in a statement.

Japanese media said the FSA is likely to let the bank go under and will only refund depositors a maximum of ¥10 million ($160,000). This would be the first time that a cap on deposit insurance had been used in Japan, since it was acted in 2002 after a slew of banks went bankrupt with the bursting of the economic bubble in the 1990s.

The bank specialises in providing banking services for small and medium sized businesses. It may report a negative net worth of ¥150 billion, the

Banking shares were mixed in Tokyo trade on Friday; the benchmark Nikkei Index was up 1.90 per cent.

Also on Friday, Japan approved a US$11 billion ($15 billion) stimulus package aimed at helping the export driven economy tackle deflation and the impact of a surging yen.

The previously announced plan, approved by the Cabinet of Prime Minister Naoto Kan, includes initiatives aimed at boosting consumption and creating employment for graduates. It is also intended to provide investment in green industries and offer support for small business.

The fresh stimulus package of ¥915 billion will be financed by reserve funds and is expected to lift the country’s gross domestic product by about 0.3 per cent, creating around 200,000 jobs.

The plan also specifies a strong yen as “a problem that cannot be unaddressed”, stating that the government “will take determined action, including intervention, when needed”.

Revised data on Friday showed that Japan’s gross domestic product grew by an annualised 1.5 per cent in the April-June quarter, well above an initial estimate of 0.4 per cent. — The private Incubator Bank of Japan (IBJ) was reported on Friday to have been ordered to halt operations and will file for bankruptcy yesterday, in what would be Japan’s first bank failure in seven years, officials said.Nikkei Business Daily reported.AFP

Lenders don't care how REIT manager distribute their income.

Lenders only want the REIT manager to pay them what is contractually binding (interest/loan) on time.

As for the default, it's only 1x CMBS (YK Shintoku).  It's not as if Saizen REIT defaulted on all their loans.

Saizen REIT cannot be compared with Rickmers.  They are fundamentally different.

See some numbers:

http://singaporeanstocksinvestor.blogspot.com/2010/03/replies-from-ak71-all-things-saizen.html

You might be right about BBs....

http://singaporeanstocksinvestor.blogspot.com/2010/03/saizen-reit-1627-lots-bought-up.html

Original  NAV  was  S$1.00  when  share price was  S$0.120.

iN  2009, my  friend  tOld  me  with  the NAV at S$1.00,  it  wOuld   nEvEr  DiE.

tEchnical  dEfault  iS  pOstpOnEd   fOr  fivE  yEars.

hOpEfully  by  that  TiME  wOrld  EcOnOmy   wOuld  rEturn  tO  nOrmal.