Singapore-based ARA Asset Management has completed the acquisition of a majority stake in Venn Partners, a specialist investment manager in European real estate private debt, according to a press statement.
The European company, which will be renamed as ARA Venn, will combine the two companies’ expertise to establish a global real estate credit platform.
ARA will provide capital to drive Venn Partners’s expansion in the real asset-backed credit markets in the UK as well as broader Continental Europe and other geographies.
The acquisition of Venn Partners is ARA’s first venture into European real estate credit, noted Mark Ebbinghaus, CEO of ARA Europe, and the newly appointed chairman of ARA Venn.
“The real assets credit market is viewed as a positive space to be in, particularly for participants with committed undeployed capital, and those with established track record managing government programmes,” he added.
Ebbinghaus joins Venn’s existing management team, which continues to own a significant stake in the business.
Founded in 2009, Venn Partners has combined assets under management (AUM) and investment mandates of over £5 billion. Its current strategies comprise a UK government-backed lending programme into private sector rental housing, value-add strategies in the UK and European commercial real estate debt, and residential mortgage finance in the Netherlands.
Prior to the acquisition of Venn Partners, ARA had acquired a majority stake in UK-based Dunedin Property Asset Management in July 2019.
As at 31 December 2019, ARA had S$88 billion in gross AUM through its management of listed and unlisted real estate investment trusts (REITs) as well as private real estate and infrastructure funds in 28 countries. The company also operates a real estate management service division with local teams to manage its assets worldwide.