ARA boosts stake in Kenedix to 30%

The target company is considered Japan’s largest independent real estate asset management group.

ARA Asset Management Limited (ARA) has increased its stake in Kenedix, Japan’s largest independent real estate asset management group, to 30%.

ARA previously supported the privatisation of Kenedix via a buyout led by Sumitomo Mitsui Finance and Leasing Company (SMFL), part of the Sumitomo Mitsui Banking Corporation Group (SMBC). Kenedix was successfully delisted from the first section of the Tokyo Stock Exchange on 17 March 2021. ARA first bought into Kenedix in 2017, and was up to the time of privatisation, its single largest shareholder at 20.27%.

Kenedix has $28.04b (JPY2.3t) in assets under management as at 31 December 2020. The Kenedix Group’s diversified funds management business includes three publicly-listed REITs and one private REIT, over 50 private real estate funds and a growing crowdfunding business.

“We are pleased to have partnered with SMFL in this strategic investment. Kenedix is led by a best-in-class management team and we see tremendous potential in terms of synergistic growth opportunities for both our businesses,” said ARA Group’s chief executive officer Moses Song.