Hong Kong’s ESR to buy Warburg-backed ARA Asset for $5.2b
Photo: ESR
August 5, 2021
Hong Kong-based ESR Cayman Ltd has agreed to acquire the entire share capital of real estate fund manager ARA Asset Management for $5.2 billion in a deal that will create Asia Pacific’s largest real asset fund manager.
In an announcement, the companies said the assets under management of the combined entity will be $129 billion, with more than $50 billion to focus on so-called New Economy real estate, such as data centres.
Under the terms of the deal, ESR will acquire 100% share capital of ARA via a 90/10 stock/cash transaction, which comprises $4.7 billion in new ESR shares and vendor loan notes, and $519 million funded by a $250 million placement to Sumitomo Mitsui Corporation (SMBC) and $269 million in debt.