ARA Asset Management CEO Talk
I just attended CEO talk with ARA Asset Management - John Lim and his team during lunch hour. Some of the points that I would like to share with you are:
- Its target is to be "Premier Integrated Real Estate Fund Manager in Asia"
- 6 REITs under management
- No redemption risk (fees are locked in for the life of the Private fund)
- Underlying Income is packed to real estate and no redemption risk
- Sources are from: Recurring Income & Acquisition
- Just launched Hui Xian REIT (RMB denominated equity offering in the world) 29 Apr 2011.
- CAGR of AUM = S$18.8Billion (61% CAGR)
- focus more on China
- Partnership with Cheung Kong group, CaLPERS, TRS, CWT, AmInvestment Group Bhd, Citic Bank
- Performance (IRR => Cacheo Logistics Trust 15.6%)
- Shareholdings
- - John Lim 37%
- - Cheung Kong Group - 16%
- - Institutional Investor - 37%
- - Retail Investor - 10%
- - 1H2011Result -> net profit > 18% to 29.86m
- - 4.8 dps / 134c => about 3.5% dividend yield
- Strategy
- - REITs
- - Private funds
- - RE Mgmt Services
- - M&A
- Fees is not affected by REITs valuation
- Valuation model => Market Price / AUM
- Growth as long as we are good fund manager
- Not following real estate cycle
- If china bubble burst, can buy more properties in China
- Growth Engine -> China
- Geography - Core - China / HK / SG / Msia / Asean (with good connection)
- Geography - Others - Japan, India (get the right partner), Middle East - Doha(GCC countries), Australia (APN - A$2B )
- Reasons why get public listed
- We need seeds capital to grow fast enough via more cash
- talent management (needs experts to manage), become rich eventually
- Make the shares liquid
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