ARA Asset Management has raised US$500 million in an equity financing round, with Sumitomo Mitsui Banking Corporation (SMBC), as the lead investor, becoming a strategic partner.
ARA says with the new support from SMBC, it will further strengthen its core asset management business and bolster its expansion plans in new economy sectors, such as logistics, data centres, infrastructure and private credit, and in key markets globally.
“We warmly welcome SMBC Group as a new partner and investor to our thriving platform, and view the strategic investment in ARA by SMBC as a tremendous endorsement of our enduring business model and growth prospects,” says ARA chairman Justin Chiu.
The largest entity of the Sumitomo Mitsui Financial Group, SMBC has US$2.25 trillion in assets as of December 31 2020 and a global presence in 40 countries.
Since its privatization in 2017, ARA has transformed its business from a dedicated Asia real estate fund manager to become the largest real assets manager in Asia-Pacific with S$116 billion (US$86.8 billion) of gross assets under management as of December 31 2020.
The company says its growth potential is expected to be underpinned by two secular trends: the financialization of real estate in Asia where listed real estate investment trusts are poised to proliferate rapidly in new markets such as India, China, and South Korea; and the tremendous growth in alternative asset classes as a key investment holding for institutional and private investors alike.