ARA Asset Management has increased its stake in Japanese property group Kenedix by almost 10% to 30%.

ARA last November participated in a US$1.3bn buyout of Kenedix by Sumitomo Mitsui Finance and Leasing Company (SMFL), part of the Sumitomo Mitsui Banking Corporation Group (SMBC).

Kenedix has since been delisted from Tokyo Stock Exchange.

ARA first bought into Kenedix in 2017, and was, up to the time of privatisation, its single largest shareholder with a 20.27% stake.

ARA said: “ARA, along with SMBC Group, views the privatisation as an opportunity to grow Kenedix’s thriving REITs and private funds business, enhance the fund manager’s access to credit and other fundraising, and expand its business into new growth areas.”

Established in 1995, Kenedix manages three publicly-listed REITs and one private REIT, more than 50 private real estate funds and a growing crowdfunding business. Kenedix had assets totalling JPY2.3trn under management at the end of last year.

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