November 16, 2021
Real Estate

ESR To Buy ARA For $5.2 Billion, Creating World’s Third-Largest Listed Real Estate Asset Manager

ESR, a Hong Kong-based logistics real estate firm, has agreed to buy 100% of ARA Asset Management, an Asia-Pacific real estate manager, for $5.2 billion in stock and cash, in a transaction that will create the world’s No. 3 listed real estate asset management company, ESR said in a statement today.

ESR, which went public at the Hong Kong Stock Exchange in 2019, will issue $4.7 billion of consideration shares and vendor loan notes shares. It will also pay $519 million in cash funded by a $250 million share placement to Sumitomo Mitsui Banking Corp. and $269 million in debt and internal resources.

ESR’s founders — including billionaire executive director Shen Jinchu — along with OMERS and represent 46% of its ownership…

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