Already a majestic name on the Singapore Exchange (SGX), legacy trading firm Straits Trading is set to boost its regal splendour as its “crown jewel” ARA Asset Management prepares for relisting in 2021/2022. With the real estate fund management business potentially worth $6.4 billion in the best case scenario, the relisting is set to be a key catalyst for Straits Trading as ARA goes public once again. 

“Since its delisting in 2017, ARA has grown at an astronomical pace and expanded its offering beyond real estate private funds and REITs, and now includes listed and unlisted REITs, private real estate equity and credit funds, and infrastructure funds in its staple of products,” says Chung Wei Le and Derek Tan of DBS Group Research. 

Based on historical REIT manager transactions, the DBS duo expect ARA to be valued at $5 billion at 5% EV/AUM, up from an initial estimate of $3.8 billion. Their most bullish estimates, however, sees the leading APAC real assets fund manager valued at $6.4 billion. ARA Asset Management currently has $110 billion gross assets under management (AUM) in 28 countries as of 1H2020, up from just $36 billion in 2016. 

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