ARA Dunedin is acquiring InfraRed Capital Partners‘ InfraRed European Real Estate Investment Management business (InfraRed Real Estate), a specialist discretionary fund manager in the real estate sector with c. US$1.4 billion of equity under management.
ARA Dunedin, owned by ARA Asset Management (ARA), aims to expand its footprint in the European real estate market.
”ARA Dunedin will work with InfraRed Real Estate to drive its strategies in European value add and core plus urban logistics, areas where the business has a long-standing track record,” said the company in a press release.
ARA Dunedin said the transaction is the result of a strategic review undertaken by InfraRed to determine the long-term evolution of its real estate investment management business, following the announcement of its partnership with Sun Life in December 2019.
As part of this review, in May 2021, InfraRed transferred its Asian real estate management business to BentallGreenOak, which is part of SLC Management, Sun Life’s alternatives asset management business.
Werner von Guionneau, CEO of InfraRed, said: “Following a strategic review, we concluded that our European real estate business would be best served for the future under a new ownership. This transaction will create a win-win situation for all stakeholders by ensuring continuity and stability for the team, leveraging ARA’s competencies and footprint. InfraRed will focus on its infrastructure proposition to provide long-term predictable income streams for our investors across assets in core and energy infrastructure.”
”Following the acquisition, InfraRed Real Estate will remain a highly focused value-add business, led by the same investment management team with a strong track record of investment performance in the real estate sector over the past 25 years and across eight funds,” said the company.
The management team of InfraRed’s European real estate business will invest in a minority stake in ARA Dunedin.
Mark Ebbinghaus, CEO of ARA Europe and Chairman of ARA Dunedin,said: “ARA is one of the largest real assets managers in Asia Pacific with a broad, high quality investor base across the region. The addition of InfraRed’s real estate team gives us the opportunity to offer our growing client base another option to invest into European real estate through a leading and well established European value add fund manager via ARA Dunedin, as part of the ARA Group. ARA Dunedin has over 20 years of experience as a specialist UK real estate investor and has recently completed several high-profile transactions in the sector. We look forward to welcoming the team to the ARA family and working together to thrive and succeed.”
The transaction is expected to complete in October 2021. Financial terms were not disclosed.
InfraRed Capital Partners was advised by Fenchurch Advisory Partners and by Weil, Gotshal & Manges LLP. ARA Dunedin was advised by Panmure Gordon and Jones Day.