By Emmanuel Oluebube
ARA Asset Management Limited (ARA or the Group), Mr John Lim1 and affiliates of The Straits Trading Company Limited (Straits Trading), CK Asset Holdings (CKAH) and Warburg Pincus have announced changes in the shareholding structure of ARA for the first time since its privatisation and delisting from the Singapore Exchange in April 2017.
The changes in shareholding are expected to take place over a series of secondary transactions Warburg Pincus, the largest shareholder of ARA, will substantially increase its stake while the pre-privatisation shareholders of the company, Mr John Lim, CKAH and Straits Trading, have also committed to increase their ownership and, subject to regulatory approvals and other conditions also committed to increase their ownership and, subject to regulatory approvals and other conditions precedent, will hold an aggregate shareholding of 51.3 per cent of the issued shares post-Transaction.
Correspondingly, upon completion of the Transaction, Warburg Pincus will hold 48.7 per cent of the issued shares of ARA. AVIC Trust, which has actively supported ARA’s rapid global expansion over the past few years, has exited as a shareholder as part of the Transaction. Since its privatisation, ARA has made great strides in realising its vision of becoming a leading APAC real assets fund manager with a global reach. The company has expanded rapidly over the past few years with strategic stakes in complementary real estate platforms in Japan, Australia, Europe and the U.S., as well as pursuing organic growth opportunities across multiple sectors. Currently, the gross assets managed by ARA Group and its Associates total US$88 billion, compared to approximately US$35 billion in assets under management at privatization.
Beyond its mainstay of REITs and private real estate funds, ARA has also diversified into infrastructure, logistics, real estate credit and real estate fintech, offering investors a plethora of products and services globally. ARA’s recent acquisition of LOGOS, one of the leading logistics real estate platforms in Asia Pacific, positions the Group well in a sector that will likely become one of the biggest beneficiaries post COVID-19.
