The fund, launched in 2018, had targeted to make the final close in the first half of 2020 with a corpus of $750 million.
Late last year, ARA had received approval from its LPs to extend fundraising after a decision-making delay on the investors’ part, primarily due to political turmoil in the region. Mass protests in Hong Kong had made international investors adopt a cautious approach toward fresh investments.
Till the end of March 2020, ARA’s Fund II is understood to have raised half of its total corpus. Meanwhile, the first close was done in October 2018 with a $225 million commitment from New York State Common Retirement Fund (NYSCRF).
ARA’s Fund II will invest in office buildings, logistics and industrial assets and retail properties across the region, according to NYSCRF. The fund is targeting a 12 per cent net IRR and a loan-to-value ratio of 55 per cent.
When contacted, ARA’s spokesperson declined to comment due to private placement regulations.
ARA launched its first value-add fund in Asia in 2013 called Morningside Investment Partners (MIP) – it raised $200 million from NYSCRF through a separate account platform. The fund also saw a $40 million infusion from ARA’s own balance sheet.
ARA’s MIP fund investment focuses primarily on Singapore and Hong Kong.