Founder to lead buyout of ARA Asset, will team up with Warburg Pincus: sources

[SINGAPORE] The founder of ARA Asset Management Ltd, which manages S$30 billion in Asian property assets, is teaming up with Warburg Pincus and other investors to buy out the real estate fund manager, sources familiar with the matter said on Friday.

ARA Group's CEO and founder John Lim, who owns 19 per cent of the company, is leading the buyout, said the sources, who declined to be identified as the talks are confidential.

Trade in shares of ARA, which has a market value of US$1.1 billion, was halted on Thursday pending an announcement.

Warburg Pincus and ARA declined comment.

The sources said the parties are still discussing the final structure of the deal and an announcement is expected next week.

Straits Trading Company Ltd is ARA's biggest investor with a 20 per cent stake. The company did not respond to a query from Reuters. Trade in Straits Trading' shares was also halted on Friday.

The Wall Street Journal first reported the news on Friday.

REUTERS