Warburg Pincus supports take-private of Singapore's ARA

According to a statement, the consortium members include shareholders The Straits Trading Company, Cheung Kong Property and JL Investment Group, an entity wholly owned by ARA co-founder John Lim. They are offering S$1.78 per share in a deal that values the company at about S$1.8 billion ($1.3 billion). ARA stock was trading at 14.7% up at S$1.72 as of late morning in Singapore November 8.

Warburg and Avic are expected to provide the company with increased access to capital, allowing it to operate more efficiently in achieving its growth objectives. Their holdings in ARA would be 30.7% and 20.5%, respectively.

"By working with ARA shareholders and Warburg Pincus, we believe that Avic Trust can help to grow ARA's platform in China and open the doors for more future business opportunities in the country," said Yao Jiangtao, chairman of Avic.

Established in 2002, ARA invests in the office, retail, logistics, industrial, hospitality and residential sectors in Asia Pacific. The company is one of the largest real estate investment (REIT) managers in Asia ex-Japan, with 10 REITs across Singapore, Hong Kong, Malaysia and Korea. It also provides property management, convention and exhibition services.

The company claimed to manage a portfolio across the region worth S$30 billion as of the end of September. Revenue for the first half of 2016 was up 10% year-on-year at A$81.6 million. Profit for the same period improved 9% to S$38.7 million.

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• Topics
• Southeast Asia
• Real estate
• Buyouts
• Warburg Pincus Asia
• Singapore