ESR divests ARA Private Funds for $359m

The divestment of ARA private funds is part of ESR’s divestment lineup worth $998m.

ESR announced the divestment of ARA Private Funds (AFP) business in Australia, Singapore, South Korea, and the USA to entities under Sumitomo Mitsui Finance and Leasing Co for an agreed enterprise value of $359m (US$270m).

The divestment is expected to yield $386m (US$290m) of net proceeds which will be used primarily to reduce the company’s debt.

The divestment of AFP is part of the company’s lineup of non-core businesses to be divested, totalling $998m (US$750m).

As part of the deal, 22 funds are being divested, representing US$9.8b in AUM with nearly 100% of the assets in these funds sitting outside of ESR’s core New Economy focus.

ESR LOGOS REIT is not part of the transaction and the remaining ARA-branded vehicles will be rebranded to ESR.

The calculation of the purchase price is referred to their net asset value and a market valuation for the funds' management platform. The transaction is subject to regulatory and other conditions to be completed by Q32024.

Follow the link for more news on

ESR Group Limited

Also Read

Construction thrives in Singapore as infrastructure and residential projects surge

CSE Global's 1Q24 orders reach $186.2m

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit