Listing hindered ARA's growth: John Lim

Singapore

BEING listed hindered ARA Asset Management's growth strategy, group founder and chief executive officer John Lim said at the Asia Pacific Real Estate Association (APREA)'s AsiaPac Property Leaders Summit on Tuesday.

Asked during a panel discussion for his thoughts on how property investors' business strategies are evolving, Mr Lim said: "This question was asked during my privatisation shareholders' meeting. People were upset that we privatised, not because the price is not right, (but because) they think that they want to ride along with the growth of the organisation. They think that there is a lot of future in this, and I do agree."

The group's assets under management (AUM) has multiplied from S$10.4 billion at the end of 2007, its year of listing, to S$36 billion at the end of 2016.

ARA was delisted on April 19 this year, after it was taken private by a consortium comprising existing shareholders - Mr Lim himself, the Straits Trading Company and Cheung Kong Property Holdings - and two new partners, private equity firm Warburg Pincus and China's Avic Trust.

The real estate fund manager listed in 2007 at S$0.76 per share; the consortium offered S$1.78 per share for shareholders to exit.

At the summit, Mr Lim said: "Given the size of our AUM in Asia, being a listed company actually hindered our growth tremendously, especially for us to change strategy to be nimble, to be able to be flexible, to introduce products and to be able to invest across the globe."

He noted that with the strengthening of the US dollar and devaluation of Asian currencies, Asian sovereign wealth funds and corporate conglomerate funds from South Korea, China and Japan have moved out of the region to diversify into the US as well as other Asian markets.

As for him, he remains "a big bull" on the Chinese market, [00:15:41]noting that global investors are shifting towards more long-term views and seeking out value-add opportunities when they invest in Asia.

Gone are the days when global investors viewed Asia as an opportunistic market and expected returns in excess of 20 per cent when they invest here, he said. Meanwhile, China's One Belt, One Road initiative will bode well for first-tier Chinese cities, especially Shanghai.

ARA manages real estate investment trusts (Reits), private real estate funds, and offers real estate management services.[00:32:56] It is one of the largest operators of Reits in Asia.