Warburg Pincus-backed ARA Asset Management Ltd, one of the largest Asian real estate fund managers, has transferred its entire stake in Cache Logistics Trust, a Singapore-listed real estate investment trust (REIT), to Logos Property for an undisclosed amount, according to a company disclosure.
Cache Logistics Trust is managed by ARA Trust Management and the transaction will see ARA transfer its entire holding in both Cache and the manager to Logos, although ARA will retain control of the manager through Logos.
Daniel Cerf, CEO of ARA Trust Management Ltd, said in the disclosure that the transaction aims to “establish a best-in-class logistics real estate development and investment management partnership in the Asia Pacific region.”
The transaction, however, needs to satisfy certain conditions, including regulatory approvals, before it can be completed, Cerf said.
Financial details of the deal and the stake involved were not disclosed but a Mingtiandi report said ARA Asset Management has agreed to sell its entire 10 per cent stake in Cache.
Cache invests in income-producing industrial real estate used for logistics purposes and real estate-related assets in the Asia-Pacific region. The REIT’s portfolio comprised 27 logistics warehouse properties located in established logistics clusters in Singapore and Australia.
The portfolio has a total gross floor area of approximately 9 million square feet valued at approximately S$1.31 billion ($966 million) as of September 2019.
ARA had acquired full ownership of Cache’s trust manager from Singapore’s CWT in June 2018.
Cache was the first among industrial S-REITs to acquire a logistics warehouse in Australia in early 2015 and has since acquired 16 warehouses in total. Its Australian properties make up close to 30 per cent of the total portfolio valuation, outnumbering the Singapore portfolio in the first quarter of 2018.
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 group CEO and co-founder John Lim partnered with Warburg Pincus and China’s AVIC Trust to take the firm private, in a deal that valued ARA at S$1.8 billion ($1.3 billion).
ARA manages 21 public and private REITs in Asia Pacific and over 70 private funds. This year, ARA U.S. Hospitality Trust, comprising 38 U.S. upscale hotels, listed in Singapore and raised $498 million.