ARA completes $340m Nanjing acquisition
Posted by luxuryasiahome on January 6, 2009
ARA Asset Management (ARA) is on the move, announcing yesterday that it has completed the acquisition of Nanjing International Finance Center (Nanjing IFC) for 1.6 billion yuan (S$340 million).
The acquisition was done through the ARA Asia Dragon Fund (ADF). ARA also manages several Reits, including Fortune Reit and Suntec Reit.
ARA group chief executive John Lim said: ‘We are extremely pleased to have the opportunity for ADF to acquire a prime office building in the heart of Nanjing, one of the major cities in China.’
The group sees many ‘value opportunities’ in China’s real estate sector as a result of the current liquidity crunch, he said.
‘We maintain a positive medium to long-term view for China and will continue to invest there via our funds.’
Located in Nanjing’s central business district and retail hub of Xinjiekou, Nanjing IFC is a just-completed 51-storey grade A office and retail building with gross lettable floor area of 109,196 sq m.
ADF completed its third and final closing in June 2008 with aggregate capital commitments in excess of US$1.13 billion. It has a mandate to invest across Asia. Its primary focus is on the main cities of China, Singapore, Hong Kong, Malaysia. Its secondary focus is on the region’s emerging economies.
Investors include public pension funds, foundations and global institutions seeking exposure to a diversified portfolio of Asian real estate investments.
ARA’s total assets under management at Sept 30, 2008 were $12 billion (US$8.4 billion).
For the nine months ended Sept 30, 2008, ARA posted a net profit of $27.2 million, 138 per cent up from $11.4 million in the previous corresponding period. Total revenue rose 95 per cent year on year to $51.8 million, from $26.6 million.
Source : Business Times – 6 Jan 2009
