ARA Asset Management marks 84% jump in Q3 profit

ARA Asset Management Limited reported a 84 per cent jump in net profit for the third quarter ended Sept 30 to S$31.47 million, mainly driven by higher finance income and management fees.

Finance income more than quadrupled to S$17.12 million from S$3.79 million, thanks to higher distribution income from Suntec Reit as the group shored up its stake in the real estate investment trust (Reit) this year, the group's investment in private real estate funds, as well as a net gain on fair valuation of financial assets.

The increase in management fees - by 5 per cent to S$34.74 million - came on the back of higher Reit management fees, portfolio management fees and real estate management services fees.

Consequently, total revenue was up 39 per cent from a year ago to S$52.98 million.

The real estate fund manager also announced on Tuesday after market close a privatisation bid by a consortium led by founder and chief executive officer John Lim at S$1.78 per share under scheme of arrangement.

The consortium comprises existing shareholders Straits Trading Company, Cheung Kong Property and Mr Lim, as well as US private equity firm Warburg Pincus and China-based AVIC Trust Co.