Singapore: AIMS Financial to buy out JV partner’s stake in AA REIT

Sydney-based fund manager AIMS Financial Services Group and its affiliates have proposed to buy out its partner’s 50 per cent stake in the management entities of AIMS AMP Capital Industrial REIT (AA REIT), it said in a statement on November 21.

The partner is AMP Capital, which also owns a 10.26 per cent stake in the units of AA REIT. Once the transaction is completed, AIMS Financial will become the 100 per cent owner of the management entities of AA REIT holding 17.88 per cent of AA REIT units.

No financial details were disclosed.

The management entities of AA REIT include AA REIT’s manager AIMS AMP Capital Industrial REIT Management; AIMS AMP Capital Industrial REIT Management Australia as its investment manager; and AIMS AMP Capital Property Management as the property manager.

The acquisition, which is expected to complete in December, follows AMP Capital’s announcement in March that it was undertaking a review of its ownership interests in the management entities of AA REIT as well as its principal stake in AA REIT.

“AIMS has enjoyed a successful partnership with AMP Capital over the last nine years, and we now look forward to this next chapter in the evolution of AA REIT. Our footprint across Asia Pacific and extensive track record in managing real estate investments strongly positions AIMS Financial Group to ensure AA REIT continues to deliver stable and sustainable long-term returns to unitholders,” said AIMS Financial Group chairman and CEO George Wang.

AIMS Financial Group acquired MacarthurCook in July 2009, the parent company of MacarthurCook Industrial REIT (MI-REIT), the predecessor of AA REIT. At that time, MI-REIT was facing several financial challenges and had a depressed market capitalisation of S$60 million ($43.7 million) with AUM at around S$544 million ($396.3 million).

Since the takeover by AIMS Financial Group, a recapitalisation exercise took place with MI-REIT raising equity to repay and refinance debt facilities and fund the acquisition of four properties from AMP Capital, resulting in a turnaround for the REIT.

In March 2010, MI-REIT’s market capitalisation increased to S$315 million ($230 million) and it gained the support of AMP Capital, which entered into a joint venture with AIMS Financial Group as sponsors of the REIT and underwent a rebranding exercise from MI-REIT to AA REIT.

AA REIT has since grown its AUM to close to S$1.5 billion ($1.1 billion) through acquisitions, strategic asset enhancement and development projects. Its portfolio consists of 26 industrial properties in Singapore and Australia.

Also Read:

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.