Singapore-based ARA Asset Management Ltd, the largest real assets manager in the Asia Pacific, on Monday announced it has roped in Sumitomo Mitsui Banking Corp (SMBC) as the lead investor for a new $500 million equity round of financing.
ARA will use the financing to strengthen its core asset management business and bolster its expansion plans in new economy sectors, such as logistics, data centres, infrastructure and private credit, and in key markets globally, it said in a statement.
The real assets manager said it seeks to capitalise on the “financialisation of real estate” in Asia where listed real estate investment trusts (REITs) are poised to expand in new markets such as India, China, and Korea. It also pointed to “the tremendous growth in alternative asset classes as a key investment holding for institutional and private investors alike” as a key secular trend.
At a group level, ARA has raised over $16 billion in equity capital since 2016, which has supported a gross transaction volume of acquisitions, divestments and development activity of almost $20 billion during the same period.
Since its privatisation in 2017, ARA has transformed its business from a dedicated Asia real estate fund manager with nearly $27 billion of gross asset under management (AUM) to become the largest real assets manager in the Asia Pacific with nearly $87 billion of gross AUM as at Dec 31, 2020.
ARA Group operates a diversified multi-product platform across assets, strategies and geographies in both the public and private markets, covering REITs and private funds in real estate, infrastructure and credit globally.