The real assets fund manager has bought a majority stake in the U.K.-based investment manager in its foray into European real estate private debt.
ARA Asset Management has acquired a majority stake in Venn Partners via its subsidiary, ARA UK Asset Management, for an undisclosed sum, the firm announced in a press release on Thursday.
The joint venture, ARA Venn, combines Venn’s specialist knowledge in European real estate credit and ARA’s global asset management expertise to grow the real estate credit platform globally.
ARA will provide cornerstone capital and working capital to drive the JV's investment management business in real asset-backed credit markets in the U.K., continental Europe and other geographies, the announcement said.
Established Track Record
«In the current and likely near term volatile market environment driven by reactions to the global pandemic, the real assets credit market is viewed as a positive space to be in, particularly for participants with committed undeployed capital, and those with an established track record managing government programs,» said Mark Ebbinghaus, CEO of ARA Europe and chairman of ARA Venn.
Venn, founded in 2009, has combined AUM and investment mandates of over £5 billion ($6.1 billion). Its current strategies comprise a U.K. government-backed lending program into private sector rental housing, value add strategies in U.K. and European commercial real estate debt, and residential mortgage finance in the Netherlands.
ARA, founded in 2002, has gross assets managed by the Group and its associates of approximately S$87 billion ($60.84 billion) across 28 countries as of 31 December 2019. It also manages 19 public and private REITs in the Asia Pacific region, including Suntec Reit, Cache Logistics Trust and ARA US Hospitality Trust.
