ESR Completes ARA Asset Management Takeover

ESR Cayman completed its 100% acquisition of ARA Asset Management for $5.2bn, less than three months after its shareholders approved the deal. Following the acquisition, ESR is now the world’s third-largest listed real estate investment manager with gross AUM of $140bn.  ESR Cayman bought all of ARA’s share capital with $4.7bn in new ESR shares at HKD 27/share and vendor loan notes, plus $519mn in cash partly funded by a $250mn share placement to SMBC. “Bringing in ARA expands the group’s network by adding 59 new capital partners”, ESR said.

ESR Cayman’s bonds were slightly higher with its SGD 5.65% Perp up 0.2 to 100.48, yielding 5.52%

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