ARA Asset Management closes US$325m deal with Asian sovereign wealth fund

The new fund will target regional assets.

ARA Asset Management, the manager of big-cap investment trusts including Suntec REIT, Fortune REIT and Cache Logistics Trust, has secured US$325m capital commitments for a new account within its private real estate platform.

The anchor investor for this fund is a premier Asian sovereign wealth fund. ARA will co-invest up to 5%-10% in this newly set up fund, which will be managed by its subsidiary ARA Fund Management (PIP)
Limited.

According to a report by DBS, the fund will have an initial term of 10 years, with options to renew and upsize should ARA need more capital for future opportunities.

“We like this feature as it enables the group to build a scalable platform to grow and offers a steady stream of recurring fees to the group,” DBS said.
 

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