ARA Dunedin is expanding its footprint in the European real estate market with the acquisition of an investment management business from InfraRed Capital Partners.

ARA Dunedin has agreed to buy InfraRed European Real Estate Investment Management, a specialist discretionary real estate fund manager with $1.4bn (€1.2bn) of equity under management.

ARA Dunedin, owned by global real assets fund manager ARA Asset Management, is a specialist UK real estate investor and asset manager.

As part of the latest deal, the management team of InfraRed’s European real estate business will invest in a minority stake in ARA Dunedin.

Financial details were undisclosed.

InfraRed Capital said the transaction is the result of its strategic review to determine the long-term evolution of its real estate investment management business. As part of this review, in May 2021, InfraRed transferred its Asian real estate management business to BentallGreenOak.

Werner von Guionneau, CEO of InfraRed Capital Partners, said: “Following a strategic review, we concluded that our European real estate business would be best served for the future under a new ownership. This transaction will create a win-win situation for all stakeholders by ensuring continuity and stability for the team, leveraging ARA’s competencies and footprint.”

Von Guionneau said InfraRed will focus on its infrastructure proposition to provide long-term predictable income streams for its investors across assets in core and energy infrastructure.

Mark Ebbinghaus, CEO of ARA Europe and chairman of ARA Dunedin, said: “ARA is one of the largest real assets managers in Asia Pacific with a broad, high-quality investor base across the region. The addition of InfraRed’s real estate team gives us the opportunity to offer our growing client base another option to invest into European real estate through a leading and well-established European value add fund manager via ARA Dunedin, as part of the ARA Group.

“ARA Dunedin has over 20 years of experience as a specialist UK real estate investor and has recently completed several high-profile transactions in the sector.”

Earlier this month, ESR announced plans to buy ARA Asset Management, which has $95bn in assets under management.

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