30-09-2013, 03:56 PM
(30-09-2013, 02:57 PM)Nick Wrote: [ -> ](29-09-2013, 09:49 PM)Boon Wrote: [ -> ]ARA Asia Dragon Fund selling assets
Posted on 28/08/2013
Vasantha Ganesan
ARA Asia Dragon Fund, a fund affiliated with Hong Kong’s richest man Li Ka-shing’s Cheung Kong Group, plans to divest all five of its assets in Malaysia in the second quarter of 2014 but will acquire new assets along the way.
The five shopping centres – 1 Mont Kiara, Aeon Bandaraya Melaka, Ipoh Parade, Klang Parade and Citta Mall – are expected to be ripe for sale once the ongoing renovation and refurbishment exercise, costing in excess of RM200 mil, is complete in the first quarter of 2014.
http://www.theantdaily.com/news/business...ing-assets
(vested)
I thought ADF 1 was supposed to be in the divestment phase and return capital back to its investors in 2014 (along with our performance fees) ? Why are they planning to acquire more properties then ?
(Odd Lots Vested)
Hi Nick,
You are absolutely right, ADF I is in divestment phase - the new acquisitions are for the other fund - ADF II.
If they could achieve a return of 20% (IRR) and 1.92 x equity multiple on divestments, the performance fees could be quite attractive IMO.
(Vested)
__________________________________________________________________________________________________________________________________________________
ARA: Malaysia stable market for investment
Posted date: August 27, 2013
"The ARA group and its private funds are always on the lookout for new assets. Its assets under management stood at S$23.5 billion as at June 30, 2013, which include assets in Malaysia.
Still, Kong said ARA, which owns Klang Parade, Ipoh Parade, 1 Mont Kiara, Aeon Bandaraya Melaka and Citta Mall under its flagship private real estate fund ARA Asia Dragon Fund (ADF), will not be buying new assets here to be injected into ADF but instead for its other funds.
ARA’s other fund is the ADF II, which has so far invested in some residential properties in Kuala Lumpur, but Kong said it will also look at retail opportunities here."
http://www.asean-investor.com/ara-malays...nvestment/
__________________________________________________________________________________________________________________________________________________
The breakout kings - by PERE
ARA Asset Management
Headquarters: Singapore
Founded: 2002
Chief executive officer: John Lim
Strategy: Pan-Asia offices, retail and residential assets, with a particular focus on China
At first glance, Singapore-based ARA Asset Management seems an odd choice as an emerging manager, particularly given its founding in 2002 and big plays in the Asian REIT world, where it has most of its assets under management. However, the firm’s private real estate funds division, led by Ng Beng Tiong, started much later and only
recently finished raising capital for its second opportunity fund, ARA Asia Dragon Fund II, on $441 million. That followed a $1.13 billion vehicle in 2008, which included commitments from the California Public Employees’ Retirement System (CalPERS), the largest US pension plan.
In an announcement earlier this year, following repeated commitments, CalPERS senior investment officer Ted Eliopoulos heaped praise on the 983-staff outfit for its strong discipline and capabilities. This time around, the pension giant committed $50 million to ARA’s second fund and $480 million to a longer-term separate account. That followed an admission by the Teacher Retirement System of Texas that the firm was included on its ‘premier’ list of managers with which to partner.
Given its strong performance in Fund I (according to PERE sources, the vehicle was generating 20 percent IRRs and a 1.92x equity multiple), it is little wonder that ambitions are running high within the corridors of 6 Temasek Boulevard. According to the firm’s third quarter results presentation, ARA plans to explore the launch of RMBdenominated funds and intends to roll out more “specialist funds for strategic investors” in the near future.
As of the end of September, ARA managed S$6 billion (€3.8 billion; $4.9 billion) on behalf of its private funds. Versus the S$15.2 billion managed by its REIT platform, that seems relatively small. However, given that the platform is barely half a decade old, it is nderstandable why this firm is on our list of emerging managers to watch.
http://www.wheelockst.com/wp-content/upl...2.4.12.pdf