Singapore based real estate fund manager, ARA Asset Management announced that it is raising $500mn in a financing round led by Japan’s Sumitomo Mitsui Banking Corporation (SMBC). With this, ARA expects to bolster its core asset management business while expanding in sectors such as logistics, data centers, infrastructure and private credit. The fresh financing is expected to be followed by an IPO by the asset manager and comes within a week of closing a $1.3bn buyout of Tokyo-based real estate investment manager Kenedix in a JV with SMBC. ARA is widening its global reach and the investment by SMBC provides it a larger playground in the Japanese market, considered Asia’s most richest in terms of asset values. The company already has operations in Greater China and Europe and is looking to increase its presence in Australia through the acquisition of Cromwell Property Group. ARA has also expanded its portfolio to include infrastructure funds, private labels and online investment startups. ARA chairman and CK Asset director Justin Chiu said, “We warmly welcome SMBC Group as a new partner and investor to our thriving platform, and view the strategic investment in ARA by SMBC as a tremendous endorsement of our enduring business model and growth prospects”.
ARAs bonds were flat with its 4.15% 2024s trading at 102.6 and its 5.2% perps trading at 101 on the secondary markets.
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