ESR Group has entered into share purchase agreements to divest its ARA Private Funds (APF) business in Australia, Singapore, South Korea and the United States to entities which include an affiliate of Sumitomo Mitsui Finance and Leasing for an agreed enterprise value of $270 million.
The APF business to be sold primarily consists of finite-life funds owning assets in traditional real estate. The transaction is structured as the sale of ESR’s interests in certain subsidiaries, with the purchase price calculated with reference to their net asset value and a market valuation for the funds management platform. The transaction is subject to regulatory and other conditions and is expected to be completed by third quarter 2024.
The expected net proceeds to ESR will be predominantly used to reduce the group’s financial indebtedness.
Following a detailed review of the businesses acquired as part of the ARA Asset Management transaction, the board identified up to $750
