U.S. private equity firm Warburg Pincus will increase its stake in Singapore-listed real estate fund manager ARA Asset Management Ltd (ARA) to 48.7% from 30.7%, according to a joint statement.
AVIC Trust, which has actively supported ARA’s rapid global expansion over the past few years, has exited as a shareholder as part of the transaction, said in the statement.
“Alongside our fellow shareholders, we are pleased to have supported and contributed to ARA’s significant growth over the past few years. The substantial increase in our shareholding in ARA demonstrates our strong confidence in its scalable business model and John’s visionary leadership. We look forward to leveraging our strong capital base to help the business become the largest real estate fund management platform in Asia Pacific and one of the largest globally. Lastly, we want to acknowledge AVIC Trust’s strong contribution to the business and look forward to working with them again in the future,” said Jeffrey Perlman, Managing Director, Head of Southeast Asia at Warburg Pincus.
“With the strong support of our formidable shareholders, ARA has enjoyed a significant growth trajectory since its privatisation. The gross assets managed by the Group and its Associates has more than doubled since privatisation, and our footprint has expanded to more than 100 cities across 28 countries. The investment from our shareholders demonstrates their confidence in our solid track record and future growth potential. I would like to take this opportunity to thank our shareholders, investors and business partners for their unwavering support over the years. In particular, I would like to register our appreciation to AVIC Trust for helping and partnering with us in creating new fund products in Mainland China,” said John Lim, ARA Group CEO and Co-founder.
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The company has expanded rapidly over the past few years with strategic stakes in complementary real estate platforms in Japan, Australia, Europe and the U.S., as well as pursuing organic growth opportunities across multiple sectors.
Today, the gross assets managed by ARA Group and its Associates total S$88 billion, compared to approximately S$35 billion in assets under management at privatisation.