15 September 2011

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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