
Can ARA Asset Management nab its $2b assets under management goal in time?
Funds from its recent rights issue is key.
With its pockets heavy with proceeds from its latest rights issue, ARA Asset Management (ARA) remains well positioned to snap up assets under management (AUM) through the launch of new fund products with capital partners.
According to a report by DBS, ARA is right on track to meet its goal, as the company is expected to grow AUM by $2b per annum. On top of this, its staple of REITs under management has over $5b in acquisition capacity which can be utilised to acquire and bolster AUM.
Moreover, DBS is upbeat on ARA’s country desk strategy in target markets of China, South Korea, and Australia.
“We are positive about the group’s focus on establishing a ‘Country Desk Strategy.’ Apart from deepening its local expertise and gaining access to deals, we believe that it gives them the ability to cement relationships with brokers, corporates and capital partners,” DBS posited.
“In addition, we believe that ARA stands ready to capture demand from onshore investors looking to invest outside of their home country,” it added.