Singapore real estate fund manager ARA eyes listing in 2-3 years

Acrophyte Hospitality Trust

17/09/2019 11:13

By Anshuman Daga
    SINGAPORE, Sept 17 (Reuters) - Warburg Pincus-backed ARA
Asset Management Ltd, one of the largest Asian real estate fund
managers, is exploring a dual stock market listing, including
one in Singapore, in the next two to three years, group CEO and
co-founder John Lim said.
    "A dual listing is a likely scenario. Singapore definitely
will be one venue," Lim told Reuters on the sidelines of a
conference organised by DealStreetAsia on Tuesday.
    ARA Group and its associates have grown their assets under
management to S$83 billion from S$36 billion ($26.2 billion) in
2017 when Lim partnered with Warburg Pincus and China's AVIC
Trust to take ARA private, valuing the company at S$1.8 billion.
    Besides Singapore, other listing options include Shanghai,
Hong Kong, London and the United States, Lim said.
    "Our transformation is done. This is the time for us to
grow," said Lim, adding that he expected the company to have a
valuation of between S$4 billion to S$5 billion in 2-3 years.
    ARA manages 21 public and private real estate investment
trusts (REITs) in Asia Pacific and over 70 private funds. This
year, ARA U.S. Hospitality Trust  ARAU.SI , comprising 38 U.S.
upscale hotels, listed in Singapore and raised $498 million.
    ARA counts Li Ka-shing-backed CK Asset Holdings  1113.HK 
and Straits Trading Company Ltd among its other investors. 
    Lim said ARA planned to expand its assets under management
to S$100 billion within two years, supported by growing demand
from a wide range of global investors hunting for yields.
    Since its delisting, ARA has acquired stakes in Japanese and
Australian real estate investment managers, set up real estate
investment platforms in Europe, U.s. and launched a Southeast
Asia infrastructure fund.
    "We should have our first close of the infrastructure fund
in the first quarter of next year," said Lim.
    The $1 billion fund will target investments in utilities,
airports, seaports and roads. "This is where the region needs to
transform and there's a big market for this," he said.
    Lim said a stock market listing of ARA will provide it a
platform to raise money, create liquidity in its shares and
offer investors an option to trim down their holdings.
    Singapore has become one of the world's biggest hubs to list
REITS and business trusts, boosted by a supportive regulatory
environment and growing demand from investors looking for stable
yields.
    
($1 = 1.3764 Singapore dollars)

 (Reporting by Anshuman Daga; editing by David Evans)
 ((anshuman.daga@tr.com; +65 64035676; Reuters Messaging:
anshuman.daga.thomsonreuters.com@reuters.net))