CapitaLand has been something of a market leader following its formation from the merger of DBS Land and Pidemco in 2000. In 2002, it listed the first REIT, CapitaLand Mall Trust, which is now part of CapitaLand Integrated Commercial Trust. It was also CapitaLand which made a success of its China foray. Of course, there are strategies and focuses that cannot be copied, such as the Raffles City brand name.

The next listed real estate investment manager (REIM) is likely to be ARA Asset Management, which was privatised in 2017. Warburg Pincus holds a 48.7% stake in ARA and analysts expect to see the timetable for an IPO next year when Warburg’s five-year holding period is up.

Straits Trading Company is the best proxy to ARA, according to DBS Group Research. In a report dated Feb 22, DBS suggests that ARA, in which Straits Trading holds a 22% stake, could be worth $6.4 billion in the most bullish scenario. At worst, ARA could be valued at $5 billion.

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