We are an Asian real estate fund management company focused on the management of public-listed real estate investment trusts ("REITs") and private real estate funds. ARA was incorporated as an exempted company with limited liability in Bermuda on 1 July 2002 and was admitted to the official list of the main board of the Singapore Exchange Securities Trading Limited on 2 November 2007.
The ARA Group currently manages REITs listed in Singapore, Hong Kong and Malaysia with a diversified portfolio spanning the office, retail and industrial sectors, private funds that invest in real estate and real estate-related securities in Asia.
REITs
We currently manage five listed REITs namely Fortune REIT dual-listed on the Singapore Exchange Securities Trading Limited (“SGX-ST”) and The Stock Exchange of Hong Kong (“SEHK”), Suntec REIT listed on the SGX-ST, Prosperity REIT listed on the SEHK, Cache Logistics Trust listed on the SGX-ST and AmFIRST REIT listed on Bursa Malaysia. For the REITs we manage, we earn:
(i) base fees based on the property or gross asset value of the REITs we manage;
(ii) performance or variable fees based on the net property income of the REITs; and
(iii) acquisition or divestment fees based on the value of acquisitions or divestments by the REITs.
Private Funds
We currently manage private funds investing in real estate and real estate-related securities in Asia . Our first private fund, the Shariah-compliant Al-Islami Far Eastern Real Estate Fund was fully divested in October 2007, achieving an IRR* of 23.7%. Investors in the private funds we manage commit capital at the outset of a fund, which is then drawn down over the investment period of the fund. Capital is returned to the investors as investments are realized. For the private funds we manage, we earn:
(i) portfolio management fees based on the committed capital, gross assets or net asset value of the
private funds we manage;
(ii) performance fees comprising of a share of the returns of the funds beyond certain hurdle rates; and
(iii) returns on seed capital.
Real Estate Management Services
We provide various real estate management services including property management services and convention & exhibition services. For providing such services, we earn management fees based generally on a percentage of the gross revenues of the properties we manage.
Corporate Finance Advisory Services
ARA Financial Pte Ltd ( “ARA Financial”) is the Group’s in-house corporate finance advisory arm. ARA Financial currently provides advisory services on asset acquisitions to the REITs managed by the Group and advises the Group on the establishment of REITs, partnerships and joint ventures as well as mergers and acquisitions.
Notes:
* Internal rate of return (before performance fees)
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