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ARA Asset Mgt files prospectus for listing in S’pore

IPO pricing slated for Oct 25 after roadshows; listing on Nov 5: sources

REAL estate fund firm ARA Asset Management yesterday filed its prospectus in Singapore for an initial public offering which sources close to the deal said may raise US$200 million for its shareholders and the firm.

Singapore-based ARA, which managed US$4.7 billion of assets at the end of June, said the company would offer new shares while two of its shareholders, JL Investment Group and Cheung Kong Investment, would also sell shares in the firm.

JL Investment Group, owned by ARA chief executive John Lim, owns 70 per cent of the firm while Cheung Kong Investment, a unit of Asia’s richest man Li Ka-shing’s flagship group, owns the rest.

The prospectus did not say how big a stake the key shareholders planned to offload in the IPO.

But sources close to the deal said the firm would sell 243 million shares or 42 per cent of the enlarged share capital.

The real estate fund management firm has appointed Credit Suisse and Singapore’s DBS Bank as lead managers, the prospectus said.

The firm manages private funds and real estate investment trusts, or Reits, including two which are listed in Singapore – Fortune Reit and Suntec Reit .

ARA also manages Prosperity Reit in Hong Kong and Amfirst Reit in Malaysia, according to its website.

Its private funds include Al Islami Far Eastern Real Estate Fund and China Capital Partners.

The prospectus said that the IPO would raise S$39.8 million as seed capital for ARA Asia Dragon Fund and S$21.4 million for other real estate projects and the remaining for working capital.

It said the ARA Asia Dragon Fund plans to raise US$1.3 billion for real estate projects in Asia.

The firm plans to organise investor roadshows from Oct 9 to 23, while the IPO is expected to be priced on Oct 25, the source said. The company will be tentatively listed on Nov 5, the source added.


Source: Reuters (Business Times 3 Oct 07)

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