UPDATE 1. ESR Hong Kong buys real estate fund manager ARA Asset for $ 5.2 billion



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Aug 4 (Reuters) – Hong Kong-based ESR Cayman Ltd will buy the entire share capital of real estate fund manager ARA Asset Management Ltd for $ 5.2 billion, the companies said Wednesday, creating the largest real estate fund manager in the Asia-Pacific region.

Following the deal, the combined company will have $ 129 billion in assets under management, according to companies, of which $ 50 billion will be focused on real estate such as data centers.

With the acquisition of ARA and its LOGOS division, ESR’s logistics real estate manager plans to focus on the e-commerce sector.

Citigroup Global Markets Singapore Pte Ltd was ARA’s lead financial advisor and Morgan Stanley Asia was ESR’s financial advisor.

In April of this year, ESR entered into another deal in partnership with Singapore-based GIC to purchase some Australian assets from Blackstone Group Inc for AU $ 3.8 billion ($ 2.8 billion). (Reporting by Niket Nishant in Bangalore)


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