Dasin Retail Trust enters into sale and purchase agreement with two subsidiaries of ARA Asset Management

DASIN Retail Trust's trustee-manager on Thursday announced that its chairman Zhang Zhencheng, as well as Aqua Wealth Holdings, has entered into a sale and purchase agreement with two subsidiaries of ARA Asset Management, to sell a 50 per cent stake in the trustee-manager, as well as some 5 per cent of the total units issued in the trust.

Mr Zhang is also a controlling shareholder of the trustee-manager, while Aqua Wealth Holdings is a controlling unitholder of the trust.

The two ARA subsidiaries involved in the transaction are: ARA DSRT (Holdings) - which will acquire the 50 per cent stake in the trustee-manager from Mr Zhang; and ARA Real Estate Investors 22 - which will, at the same time, acquire some 5 per cent of the total issued units in the trust from Aqua Wealth in two separate tranches.

The first tranche will comprise some 19.5 million, or 2.5 per cent of units in Dasin Retail Trust, while the second tranche will comprise the remaining corresponding number of units that will bring the collective amount to 5 per cent of units in the trust, as at the second completion date.

The transfer of the sale shares and the first tranche sale units is expected to be completed in May.

In a bourse filing, the trustee-manager said that "leveraging ARA's established track record and expertise in Reit (real estate investment trust) management, as well as its global network of investors, (the trustee-manager) will work closely with ARA to drive operating performance and take the trust into its next phase of growth".

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As at Dec 31, 2020, ARA has some S$116 billion in gross assets under management globally, and is among the largest and fastest growing real assets fund managers in Asia-Pacific. It manages both publicly-listed Reits and private funds in real estate, infrastructure and credit, with operations covering Asia, Europe and North America.

"ARA and the sponsor of (Dasin Retail Trust), Zhongshan Dasin Real Estate, will also jointly explore new fund products and business opportunities to establish a broader China retail platform in support of the trust," added the trustee-manager.

It is looking to "crystallise opportunities" in the Greater Bay Area (GBA), which is touted to be one of the fastest-growing regions in Greater China and "poised to become an economic powerhouse for China over the next decade".

"With strong growth prospects, promise of further opening-up and an improvement in the business environment, the GBA remains a key attraction to global investors looking to ramp up investment in the region. The strategic partnership with ARA provides (the trustee-manager) with enhanced capabilities and access to a wider pool of institutional capital to crystallise opportunities in the GBA," said the trustee-manager.

Mr Zhang added: "We hope to combine our local market expertise with ARA's funds management experience to increase our competitive edge in the region and expand our access to institutional capital. Together, we will have significant resources and opportunities to grow Dasin Retail Trust."

Units of Dasin Retail Trust closed flat at S$0.73 on Thursday, prior to the announcement.