Thursday, May 9, 2013

ARA Asset Management's topline dipped 6% to S$32.2m | Singapore Business Review

ARA Asset Management's topline dipped 6% to S$32.2m | Singapore Business Review:Private funds deploying capital; management is confident of hitting 2013 AUM growth target of S$2bn. Management is confident of hitting its target of growing assets under management (AUM) by S$2bn in 2013 and initiatives are underway to meet that target.

The group should be able to meet the target through a variety of sources and management is looking to launch 1 new REIT and 1 new Private Equity fund over the coming quarters.

On that front, we may see the group re-launching their plans to list Dynasty REIT, with an initial portfolio consisting of assets from its managed Asia Dragon Fund 1.

In addition, we understand that ARA has deployed 70% of the capital in ADF2 and will be looking to launch the third fund of this Asia Dragon series in 2014. CIP fund, anchored by Calpers, is also expected to start investing in a number of assets in the coming quarters.

REITs to continue acquiring and contribute to recurring earnings. Apart from providing a steady base of recurring earnings given that most of its REITs have seen compression in yields and are trading at levels where they can acquire more aggressively.

Management sees Fortune REIT, Suntec REIT and Cache Logistics Trust as frontrunners in the acquisition game in the coming quarters. When executed, these REITs will offer near term earnings uplift (through acquisition fees) and higher recurring income thereafter through an enlarged AUM.

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