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ARA closes $1.13bn pan-Asia fund

Hong Kong tycoon Li Ka-shing’s firm will mainly focus on the main cities in China, Singapore, Hong Kong and Malaysia, but also look to Taiwan, Thailand and Vietnam. With leverage, ARA has a potential $5bn to invest.

ARA Asset Management, a firm partly-owned by Hong Kong tycoon Li Ka-shing, has closed its private real estate fund, ARA Asia Dragon Fund, on $1.13 billion (€725 million).

With debt, the fund has more than $1.6 billion of equity capital at its disposal, representing potential real estate investment capacity of over $5 billion, the firm said in a statement. The funds were raised from Asian institutional investors.

The ARA Asia Dragon Fund will invest across Asia, with a primary focus on first tier cities in China, Singapore, Hong Kong and Malaysia. It will also have a secondary focus on first tier cities in Taiwan, Thailand and Vietnam.

Founded in 2002, ARA Asset Management has primarily managed real estate investment trusts (REITs), but also has a selection of private real estate funds. The firm currently manages REITS listed in Singapore, Hong Kong and Malaysia with a diversified portfolio spanning the office, retail and industrial sectors. It also manages private real estate funds that invest in Singapore, Hong Kong, Malaysia and China, and has a specialist equity fund investing in a portfolio of primarily listed equity securities in asset-intensive growth sectors in the Asia Pacific region.