has been holding for years and experienced the up and down 

 
Godwinlow ( Date: 20-May-2021 15:42) Posted:
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Godwinlow ( Date: 18-May-2021 07:49) Posted:
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ARA Asset Management has moved a step closer to a public listing, with the Singapore-based real estate fund manager announcing today that it is raising $500 million in a financing round led by Japan&rsquo s Sumitomo Mitsui Banking Corporation (SMBC) which is understood to be part of the run-up to an initial public offering on a public exchange.
The equity sale allies ARA with one of Japan&rsquo s largest financial conglomerates as the company plots a return to public stock markets less than five years after Warburg Pincus teamed up with chief executive John Lim to privatise Asia&rsquo s largest manager of real estate investment trusts.
 
&ldquo We warmly welcome SMBC Group as a new partner and investor to our thriving platform, and view the strategic investment in ARA by SMBC as a tremendous endorsement of our enduring business model and growth prospects,&rdquo said ARA chairman and CK Asset director Justin Chiu.
The investment by SMBC was announced less than a week after ARA announced the closing of a $1.3 billion joint buyout with the Japanese bank of Tokyo-based real estate investment manager Kenedix.
Prepping for a Fresh Listing
The investment by SMBC ramps up ARA&rsquo s profile in Asia&rsquo s second largest economy, to complement operations it has established in Greater China and Europe as it has moved beyond its home base in Singapore.
ARA chairman Justin Chiu
In December ARA moved step closer to growing its Australian presence when Paul Weightman, CEO of Sydney-based Cromwell Property Group, retired from the firm in a move which could pave the way for the Singapore group to gain control of the Aussie fund manager after building a nearly 30 percent stake in the operation.
Helped along by this regional growth, a report by Bloomberg in February of this year indicated that ARA could raise as much as $1 billion in a dual-listing IPO as soon as this year, although that time frame could now be pushed into 2022.
Lim, Warburg Pincus and their associates valued ARA at $1.3 billion  in the 2016 buyout  with the company&rsquo s assets under management having since tripled to S$116 billion ($86.8 billion) as of 31 December 2020. The Singapore firm has also expanded its range of investment vehicles by venturing into infrastructure funds, private debt and online investment startups.
ARA is understood to see opportunities to expand its REIT management business in Japan, which has some of Asia&rsquo s highest asset values, as well as one of the region&rsquo s most developed markets for real estate investment trusts.
In a statement, ARA also indicated that with SMBC&rsquo s support, the company hopes to further strengthen its core asset management business and bolster expansion plans in new economy sectors such as logistics, data centres, infrastructure and private credit,
Expanding in Japan
SMBC&rsquo s equity stake in ARA is seen as separate from the $1.3 billion joint venture buyout of Kenedix which the two partners first announced earlier this year.
Masaki Tachibana of SMBC
In an update announced last week it was revealed that ARA had  increased its equity stake in Japanese Kenedix to 30 percent  from 20.27 percent previously. ARA had earlier supported the privatisation and buyout of Kenedix by SMBC leasing arm SMFL, which maintains a 70 percent stake in the company.
With Japan serving as both one of the region&rsquo s largest real estate markets and as one of top sources of cross-border investment, the deal could also enhance support for ARA&rsquo s regional array of investment vehicles.
&ldquo We look forward to working with the SMBC Group to extend our reach both in Japan and globally in terms of access to assets, capital and business opportunities more generally,&rdquo an ARA representative told Mingtiandi.
SMBC, the largest constituent of Japan&rsquo s giant Sumitomo Mitsui Financial Group, had $2.25 trillion in assets as of 31 December 2020 and a global presence in 40 countries. Under what it calls a &ldquo mutually beneficial and strategic partnership&rdquo , the megabank will support ARA&rsquo s asset-light business model and expansion plans, which align with SMBC&rsquo s own growth strategies in Asia.
ARA will draw on SMBC&rsquo s cash infusion to continue executing its &ldquo raise, invest, manage and build&rdquo strategy. Asia&rsquo s largest real assets manager has raised over $16 billion in equity capital since 2016, supporting a gross transaction volume of almost $20 billion during the same period.
Looking Outward
ARA&rsquo s pre-IPO financing comes as the company has been rapidly expanding its activities in the region.
With its business in Korea already managing a number of REITs, ARA has been battling to complete a  takeover of Australia&rsquo s Cromwell Property Group. ARA last year acquired  a majority stake in Sydney-based developer and fund manager Logos Group  for an undisclosed sum.
Last month, ARA agreed to acquire a 50 percent stake in Dasin Retail Trust&rsquo s trustee-manager and 5 percent of the trust&rsquo s units, in a deal that would extend the firm&rsquo s reach into China&rsquo s Greater Bay Area,  The Asset reported.
Dasin, with assets under management of RMB 11.6 billion ($1.8 billion), has a portfolio of seven retail malls in high-population catchment areas with limited competition in Zhongshan, Zhuhai and Foshan.
In addition to its spread across the world map, ARA is expanding in the digital realm.
Last week, ARA-backed fintech firm Minterest Holdings announced that it had agreed to  merge with blockchain platform Digiassets Exchange Singapore (SDAX)  to build a global digital asset exchange ecosystem. ARA co-founder John Lim will be the chairman of the merged entity, SDAX Financial.
| Godwinlow ( Date: 18-May-2021 07:47) Posted: |
Godwinlow ( Date: 17-May-2021 21:53) Posted:
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Justin Chiu, Chairman of ARA said, &ldquo ARA Group stands to benefit from long-term market trends in the APAC region, such as the surge in demand for new economy real assets. We are very excited about the prospect of working with our new shareholders and hope to expand swiftly on our new partnership with SMBC.&rdquo
 
Since its privatization in 2017, ARA has transformed its business from a dedicated Asia real estate fund manager with approximately $36 billion of gross AUM1 led by its REITs, private funds and property management businesses, to become the largest real assets manager in the Asia Pacific with $116 billion of gross AUM2 as at 31 December 2020.
Today, ARA&rsquo s business model is robust, scalable and well-diversified. Beyond expanding into new alternative asset classes, it has bolted on new operating platforms, such as LOGOS Property Group, one of Asia Pacific&rsquo s leading logistics property development managers, with AUM of over A$14 billion.
LOGOS operates as ARA&rsquo s exclusive platform for logistics assets, in a sector well supported by secular macroeconomic trends in Asia such as the outsized growth of e-commerce. LOGOS also features a growing presence in data centres, in partnership with leading data centre operators and  investors  in the region and globally.
With the new support of SMBC, ARA, together with its existing shareholders, will further strengthen its core asset management business and bolster its expansion plans in new economy sectors, such as logistics, data centres, infrastructure and private credit, and in key markets.
Going forward, ARA&rsquo s growth potential is expected to be underpinned by two powerful secular trends like the financialization of real estate in Asia where listed REITs are poised to proliferate rapidly in new markets such as India, China, and Korea, and the tremendous growth in alternative asset classes as a key investment holding for institutional and private investors alike.
In the Asia Pacific, current public REIT equity market capitalization is a mere $320 billion, representing just 1% of GDP, as compared to US public REIT equity market capitalization of over $1.3 trillion, or over 5% of GDP. Accordingly, the REIT market in the Asia Pacific is expected to grow rapidly, and at comparable US levels, represents an over 1 trillion market opportunity for investors and market participants.
As one of the largest managers and sponsors of REITs in the Asia Pacific and a pioneer in the Singapore REIT market, ARA is exceedingly well-positioned to capture this emerging opportunity.
According to  Preqin, alternative assets in this region are expected to grow at a CAGR of 25.2% over the next five years. ARA&rsquo s continued push into logistics, data centres, infrastructure and real estate credit via its private funds business further positions it to capture significant capital flows as institutional investors pivot towards Asia for growth.
SMBC said: &ldquo We look forward to working with ARA in support of its asset-light business model and expansion plans, which align very well with SMBC Group&rsquo s own growth strategies in Asia. ARA&rsquo s diversified business, a large suite of investment offerings and AUM scale are unrivalled in Asia, so we are pleased to enter into this mutually beneficial and strategic partnership, which we hope will help to further strengthen ARA&rsquo s competitive position and market leadership.&rdquo
With the cash infusion from this latest financing round, ARA will continue to execute its &ldquo Raise, Invest, Manage and Build&rdquo strategy. Group-wide, it has raised over $16 billion in equity capital since 2016, which has supported a gross transaction volume of acquisitions, divestments and development activity of almost $20 billion during the same period. ARA utilizes an investor-operator model to manage its investments and to add value at every stage of an asset&rsquo s life cycle. Its real estate asset management capabilities cover the entire property value chain and reflect its competitive advantage. Over time, ARA has built a demonstrable track record in growing its business and ultimately delivering value for all its stakeholders.
Also integral to ARA&rsquo s growth strategy is a strong focus on sustainability where it adopts a holistic approach in incorporating ESG considerations into its business operations. ARA&rsquo s initiatives on the sustainability front include joining as a signatory for the Net Zero Carbon Buildings Commitment under the World Green Building Council and adopting the United Nation Principles for Responsible Investment (UNPRI). To date, the ARA Group has secured green loans exceeding $1 billion and looks to do more in the area of green financing. ARA is also an active participant in GRESB, and many of its publicly listed REITs and private real estate funds have obtained 5-Green Star Ratings.
this will add to Straits Trading bottom lines
Godwinlow ( Date: 17-May-2021 15:41) Posted:
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Godwinlow ( Date: 17-May-2021 15:41) Posted:
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ARA Asset Management has raised US$500 million in a round of equity financing, with Sumitomo Mitsui Banking Corporation (SMBC) as the lead investor. It is also welcoming SMBC as its new strategic shareholder, the asset fund manager announced on Monday.
According to ARA, with the new support from SMBC, the company aims to strengthen its core asset management business and boost its expansion plans into new sectors such as logistics, data centres, infrastructure and private credit, and in key markets globally.
" ARA Group stands to benefit from long-term market trends in the APAC (Asia-Pacific) region, such as the surge in demand for new economy real assets. We are very excited about the prospect of working with our new shareholders and hope to expand swiftly on our new partnership with SMBC," said ARA chairman Justin Chiu.
The company expects to leverage the growing real estate investment trust (Reit) and alternative asset markets in the Asia-Pacific to support its expansion.
ARA predicts that listed Reits are poised to " proliferate rapidly" in new markets such as India, China and South Korea, and believes that it is " exceedingly well positioned" to capture this emerging opportunity.
It also noted Preqin' s 2020 report on global alternative assets, which predicted that Asia' s asset under management will grow at a compound annual growth rate of 25.2 per cent over the next five years, to back ARA' s continued push into logistics, data centres, infrastructure and real estate credit.
" The growth in alternative assets in Asia-Pacific has also hit an inflection point, far outpacing the growth in the US and Europe," ARA added.
Said SMBC: " We look forward to working with ARA in support of its asset-light business model and expansion plans, which align very well with SMBC Group' s own growth strategies in Asia."
SMBC is a Japanese multinational banking and financial services institution with US$2.25 trillion in assets as at Dec 31, 2020, and a presence in 40 countries.
kelvin.cylee01 ( Date: 17-May-2021 15:22) Posted:
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coolbear123 ( Date: 17-May-2021 01:08) Posted:
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is it call CDP?
ichiban ( Date: 17-May-2021 14:52) Posted:
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kelvin.cylee01 ( Date: 17-May-2021 12:04) Posted:
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Or did i miss any news? appreciate any advise.
coolbear123 ( Date: 17-May-2021 01:08) Posted:
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Godwinlow ( Date: 16-May-2021 17:35) Posted:
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