ARA Asset Management has reported an 11% increase in net profit for the nine months ended 30 September 2010 (YTD 3Q2010) to $38.1 million.

Total revenue rose 19% to $70.8 million during the period, driven by a 28% jump in recurrent management fees from $48.8 million in YTD 3Q2009 to $62.4 million in YTD 3Q2010. The increase was primarily due to contributions from the group’s real estate management services business division and the ARA Harmony Fund which were established in 4Q2009 and Cache Logistics Trust, which was listed on the SGX on 12 April 2010.

The group received acquisition and performance fees of $1.1 million in YTD 3Q2010 from the ARA Harmony Fund. In YTD 3Q2009, the group received $2.4 million in relation to the establishment of the ARA Harmony Fund. Other income decreased 11% to $7.3 million in YTD 3Q2010 primarily due to lower net gains on disposal / fair valuation of REIT units received by the group as part payment for REIT management fees.

As at 30 September 2010, the property portfolios of Suntec REIT and Cache were revalued upwards by 4.0% and 1.5% respectively while the Suntec Singapore International Convention & Exhibition Centre, owned by the ARA Harmony Fund, was revalued with a valuation gain of 20%. Together with acquisitions by the ARA Asia Dragon Fund, these valuation gains pushed the group’s total assets under management (AUM) to a record $14.7 billion.

On 26 October 2010, Suntec REIT announced that it has entered into a conditional share purchase agreement to acquire a one-third interest in Marina Bay Financial Centre Towers 1 and 2, the Marina Bay Link Mall and 695 car park lots (MBFC). If approved by Suntec REIT’s unitholders, the acquisition of this prime landmark commercial development will add a further $1.5 billion to ARA’s AUM and contribute materially to the Group’s income in FY2010 and beyond.