In January 2022, ESR completed the acquisition of ARA Asset Management for US$5.2 billion ($6.9 billion), satisfied with 90% of shares and 10% of cash. Along with the acquisition were parts of ARA that were non-core to ESR, including listed entities such as Cromwell Property Group and a few REITs that do not fit in with ESR’s New Economy focus.
ESR Group announced its FY2022 ended Dec 31, 2022 results on March 22. This is its first set of full-year results following its acquisition of ARA Asset Management which was completed on January 20, 2022. Since then, ESR’s share price is down 46%. In recent weeks, ESR’s share price may have been affected by its undertaking to underwrite ESR-LOGOS REIT’s (E-LOG) $150 million equity fundraising (EFR), some market watchers reckon.
In answers to unitholders, E-LOG’s manager has said that the funds raised of around $300 million from a placement and EFR would be used for redevelopment, asset enhancement initiatives (AEI) and acquisitions if any. Among the New Economy assets in E-LOG’s portfolio with leases of more than 40 years is Cold Hub which has unutilised GFA.
