ARA Announces Changes In Shareholdings May 26, 2020
A series of share transactions will see John Lim, CKAH, Straits Trading and Warburg Pincus increase their stakes in the company
Singapore, 26 May 2020 - ARA Asset Management Limited (ARA or the Group), Mr John Lim1 and affiliates of The Straits Trading Company Limited (Straits Trading), CK Asset Holdings (CKAH) and Warburg Pincus today announced changes in the shareholding structure of ARA for the first time since its privatisation and delisting from the Singapore Exchange in April 2017.
The changes in shareholding are expected to take place over a series of secondary transactions (Transaction).2 Warburg Pincus, the largest shareholder of ARA, will substantially increase its stake while the pre-privatisation shareholders of the company, Mr John Lim, CKAH and Straits Trading, have also committed to increase their ownership and, subject to regulatory approvals and other conditions precedent, will hold an aggregate shareholding of 51.3% of the issued shares post-Transaction. Correspondingly, upon completion of the Transaction, Warburg Pincus will hold 48.7% of the issuedshares of ARA. 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.
Since its privatisation, ARA has made great strides in realising its vision of becoming a leading APAC real assets fund manager with a global reach. 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 billion3, compared to approximately S$35 billion in assets under management at privatisation.4
Beyond its mainstay of REITs and private real estate funds, ARA has also diversified into infrastructure, logistics, real estate credit and real estate fintech, offering investors a plethora of products and services globally. ARA’s recent acquisition of LOGOS, one of the leading logistics real estate platforms in Asia Pacific, positions the Group well in a sector that will likely become one of the biggest beneficiaries post COVID-19.
Mr John Lim, ARA Group CEO and Co-founder said, “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.”
Chairman and Director of ARA, Dr Justin Chiu said, “CKAH co-founded the company together with Johnback in 2002 and is proud to have been an important part of ARA’s success story for almost two decades. We value the strategic partnership with ARA and look to continue to support ARA in its future growth through our global network and expertise.”
Mr Jeffrey Perlman, Managing Director, Head of Southeast Asia at Warburg Pincus said, “Alongside our fellow shareholders, we are pleased to have supported and contributed to ARA’s significantgrowth over the past few years. The substantial increase in our shareholding in ARA demonstrates ourstrong confidence in its scalable business model and John’s visionary leadership. We look forward toleveraging 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.”
Ms Chew Gek Khim, Executive Chairman of Straits Trading said, “As a long-term shareholder of ARA, Iam excited to continue to partner with John, CKAH and Warburg Pincus in charting ARA’stransformational growth. ARA is an integral part of Straits Trading’s real estate ecosystem and we are strategically positioned to benefit from ARA’s unique growth proposition, while we continue to value- add as a shareholder.”
1 Mr John Lim will hold shares through JL Investment Group II Limited and JL Investment Group, both of which are wholly-owned by Mr Lim Hwee Chiang, John, Group CEO and co-founder of ARA.
2 The last phase of the Transaction is expected to complete no later than 31 May 2021.
3 Includes assets under management by ARA Asset Management Limited and the Group of companies (“ARA Group”) and its Associates as at 31 December 2019.
4 As at 31 December 2016.
ARA Asset Management Limited
Tel: +65 6512 5161
The Straits Trading Company
Tel: +65 64224281
Warburg Pincus LLP
Tel: +86 13511079525