ARA Asset Management

[Nick]

Prosperity REIT proposed to acquire 9 Chong Yip Street in Kwun Tong for HK$1,010 million
2013-12-15

http://www.prosperityreit.com/en-US/Pres.../detail/30 [Article]

More AUM and performance fees for ARA.

Kwun tong got grade A property? I don't know what is considered grade A in HK?
Kwun tong has a lot of old industrial buildings. And gov allow them to refurbish and rezone without paying land premium. Can rent out but cannot sell.

I guess this building may be a refurbished one.

ARA funds got nothing to sell meh? Keep buying third party and use up debt capacity.

What's the problem here ? At worst case, get the underlying REIT to do a rights issue or placement and happily collect the AUM fees. You can hardly lose as a REIT Manager.