This article mainly introduces ara investment’s business expansion into the European market and establishes its European headquarters in London. It also analyzes the development experience and management model of ara investment, and explores its enlightenment to domestic investment management companies in China. The article is divided into three parts: an overview of ara investment, ara’s expansion into the European market, and inspiration for domestic companies.
ara investment is a leading Asia-Pacific asset management company founded by Li Ka-shing
ara investment, also known as ARA Asset Management, is a leading Asia-Pacific real estate asset management company founded in 2002 by Li Ka-shing’s Cheung Kong Group and John Lim. It is headquartered in Singapore and manages assets over S$88 billion across 28 countries as of December 2019. ara has built a strong platform comprising REITs listed across Singapore and Hong Kong, private real estate and infrastructure funds as well as real estate management services. It has a global workforce of 400 employees located across 21 cities managing assets across the Asia Pacific, Europe and USA.
ara investment continues to expand globally and establishes European HQ in London
In March 2018, ara investment announced the establishment of its European headquarters in London to further expand its global footprint beyond Asia-Pacific. The reason for choosing London despite Brexit is that London remains closely connected with Europe and meets ara’s business and talent requirements. The London team will also help ara better serve the growing investment demand from Asia into Europe. ara has hired senior executives from StanChart and other companies to lead the London team and plans further expansion in Europe through acquiring asset management platforms or launching new REITs and private funds.
ara’s expansion in Europe is in line with Li Ka-shing’s increased investment in UK
ara investment has close ties with Li Ka-shing, as it was co-founded by Cheung Kong Group in 2002. Li Ka-shing has been divesting assets in mainland China and Hong Kong while increasing investment in Europe, especially UK infrastructure and utility assets. ara’s expansion into Europe echoes Li’s strategy shift. Li’s companies already own UK assets in gas, electricity, water, ports, etc worth over £30 billion. These assets generate steady recurring income and are highly defensive, fitting for Li’s succession planning.
ara’s management model and fundraising ability inspire domestic firms
ara investment’s decentralized management structure empowers different regional and sector teams, which differentiates it from most domestic companies where the headquarters control everything. ara is also flexible in sourcing capital from global pensions, sovereign wealth funds and family offices, whereas most Chinese investment managers rely solely on domestic capital with limitations. Therefore, Chinese firms need to reform management control, diversify products and asset classes, and attract international capital, in order to catch up with world class investment platforms like ara.
In conclusion, ara investment’s steady expansion worldwide, diverse capital source and empowered specialty teams set an example for domestic investment managers to learn from. Reform and globalization are musts for Chinese firms to compete globally.