ESR Cayman has signed an agreement to acquire real estate fund manager ARA Asset Management for $5.2bn.
The deal will create the third largest listed real estate investment manager globally with a combined AUM of $129bn.
Go deeper with GlobalData
As agreed, ESR will acquire 100% of the share capital of ARA through a 90/10 stock/cash transaction. Around $519m will be paid in cash, while the remaining amount in new ESR shares and Vendor Loan Notes.
The deal is expected to close by the end of this year or first quarter of 2022. The completion of the deal is, however, subject to shareholders’ approval, regulatory nods and other customary conditions.
About ARA:
Founded in 2002, ARA focuses on managing public and private investment funds that invest in different real estate assets. The company is said to be the largest real assets manager in Asia Pacific with around $95bn in gross AUM.
Additionally, ARA owns a controlling stake in Logos, a logistics specialist with operations across various Asian countries.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataLogos’ total AUM doubled in the last two years to $17bn.
Quote:
ESR chairman Jeffrey Perlman said: “With the acquisition of ARA, we are very excited to bring two best-in-class businesses together to form Asia Pacific’s #1 real asset fund manager powered by the leading New Economy platform.
“We are currently witnessing a ‘once in a generation’ change in real estate where leading global investors are seeking to rebalance their portfolios by divesting institutional quality assets in order to redeploy that capital back into New Economy real estate where they have been meaningfully underweight.
“By creating a one-of-a-kind closed loop solutions ecosystem for capital partners with the addition of ARA, we can leverage our perpetual capital vehicles to help them divest these assets and captively redeploy back into New Economy real estate via ESR and Logos, the largest New Economy real estate platform in Asia Pacific with over $50bn of AUM.”
About ESR:
Based in Hong Kong, ESR is the largest APAC focused logistics real estate platform by gross floor area.
As of 31 December 2020, the fair value of the properties directly held by ESR and the AUM with respect to the funds and investment vehicles managed by it was around $34bn.
