SG’s ARA Asset Management said to delay final close of second value-add fund

Singapore. Photo by Andrew Kow on Unsplash

Singapore-based ARA Asset Management has delayed the final close of its second value-add fund ARA Real Estate Partners Asia II (Fund II) until October 2020, according to a report by PERE.

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.

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.