ARA Asset Management's net profit for the first quarter ended March rose 6 per cent to $17.8 million on the back of revenue rising 18 per cent to $38.2 million from $32.2 million a year ago.
Notably, its acquisition, divestment, and performance fees surged from $953,000 a year ago to $2.6 million. This was primarily due to acquisition fees received in relation to Prosperity Reit's acquisition of 9 Chong Yip Street in January this year, and Suntec Reit's progressive payments for its acquisition of 177 Pacific Highway.
Meanwhile, recurrent management fee for the quarter grew 11 per cent to $29.7 million due to higher Reit management fees and real estate management fees.
The group's assets under management (AUM) stood at about $25.4 billion as at March 31.
In April 2014, ARA completed the acquisition of Macquarie Real Estate Korea Limited (renamed ARA Korea Limited). With this, ARA currently manages two privately held Korean Real Estate Investment Trusts invested in office properties.
"South Korea is one of our target markets, and we are pleased to acquire this platform with a good local team in place and with one of the leading regional sovereign wealth funds as our partner. Over time, we look to grow the platform with the establishment of new Reits and private funds," said John Lim, chief executive officer of ARA Group.
Its counter dipped 1.5 cents to end trading at $1.805.
Source: Business Times, 8 May 2014