ARA takes prudent approach to investments during Covid-19

AS dealmaking slows amid the economic uncertainty brought about by the novel coronavirus outbreak, ARA Asset Management, one of Asia's largest real estate fund managers, has put its investment activities on hold. 

In a message addressing stakeholders on Thursday, ARA group CEO John Lim wrote that the group's investment activities "are currently paused out of prudence" against a backdrop of what he described as "extremely trying times".

Mr Lim, whose group manages some S$88 billion in gross assets, also noted that the crisis brought on by Covid-19 is likely to be prolonged. "We prepare ourselves for the worst but hope for the best," he said.

Still, ARA's local experts are "sniffing for opportunities as we speak", Mr Lim added.

The real estate fund manager last week, through its subsidiary ARA UK Asset Management, acquired a majority stake in European investment manager Venn Partners for an undisclosed sum. 

Mr Lim reassured stakeholders that, since the Sars outbreak in 2003 and the global financial crisis in 2008, the group has learnt to build a "robust" company system and capable local teams in the countries ARA operates in. This has allowed ARA to continue managing its properties well during the current crisis and plan ahead for recovery. 

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Across its offices and ARA-managed assets, the group has implemented business continuity measures such as team splitting, virtual meetings and strict visitor protocols. It has also taken safety precautions including frequent office cleaning, safe distancing and leave of absence for staff at risk. 

"We are grateful that all our staff are safe," Mr Lim wrote in the message. "But there is no room for complacency."

ARA manages listed and unlisted real estate investment trusts (Reits) and private real estate and infrastructure funds in 28 countries. In Singapore, the Reits it manages include Suntec Reit, Cache Logistics Trust and ARA US Hospitality Trust.