The deal will create one of the world's largest real estate management firms, with total assets under management of $129 billion.
Hong Kong-listed ESR Cayman is entering into an agreement to purchase real estate fund manager ARA Asset for $5.192 billion, the firm announced on Wednesday.
ARA is the largest real estate manager in Asia Pacific, with $95 billion in gross assets managed by the Group and its associates as at 30 June 2021. Its global platform has focus on APAC, including key markets such as China, India, Japan, Australia and New Zealand, South Korea, Hong Kong SAR and Singapore, and its subsidiary Logos focuses on «new economy» real estate assets, including logistics and data centers
New Opportunities
ESR said the deal would allow it to grow its fund management platform across geographies, investment strategies and risk/reward profiles, and «double down» on opportunities in the new economy, the announcement said.
The firm also noted that it is well-positioned to benefit from the financialization of real estate in APAC, which is set to take off and represents an opportunity of more than $2 trillion.
In December 2020, finews.asia reported that ESG was partnering Singapore sovereign wealth fund GIC to establish a $750 million joint venture to invest in industrial and logistics real estate in India.
