ARA, Straits Trading Form Property Investment Alliance
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ARA Asset Management Ltd., a manager of real estate investment trusts partly owned by billionaire Li Ka-shing, and Straits Trading Co., agreed to jointly invest in property funds.
Straits Trading will acquire a 20.1 percent stake in ARA for S$294.4 million ($238 million) from Li’s Cheung Kong Investment Co. and ARA Chief Executive Officer John Lim in cash and shares, making it the biggest shareholder, the company said in a statement. Straits Trading, a Singapore-based tin-smelting company, will also form a new company with Lim that will undertake property investments, excluding hospitality assets, with capital commitment of as much as S$950 million, it said.