Sumitomo Mitsui to acquire the ARA Private Funds business in Australia, Singapore, South Korea and the USA from ESR Group for $270m.

Sumitomo Mitsui, a Japanese multinational banking financial services institution, agreed to acquire the ARA Private Funds business in Australia, Singapore, South Korea and the USA from ESR Group, APAC's largest real asset manager, for $270m. The APF business to be sold primarily consists of finite-life funds owning assets in traditional real estate sectors including office, retail and hospitality. The transaction is structured as the sale of ESR's interests in certain subsidiaries, with the purchase price calculated with reference to their net asset value and a market valuation for the funds management platform. The transaction is subject to regulatory and other conditions and is expected to be completed by 3Q 2024.