ARA Asset Management has raised US$240 million (S$300 million) in capital commitments for its private real estate funds division.

The capital commitments were raised via a new separate account platform, Morningside Investment Partners (MIP).

Mandated to pursue a core-plus/value-add strategy, MIP has a term of eight years with two additional extension periods of one year each.

It will target income-producing properties in the office and retail sectors in Singapore, Hong Kong and Malaysia.

ARA group chief executive John Lim said: "As ARA continues to expand its suite of fund platforms, we are delighted to have established this new strategic partnership, which we credit to our expanding fund raising capabilities as well as our strong track record.

"With this new separate account, ARA now manages capital for four of the top 10 largest US public pension funds."

ARA Fund Management (MIP), a wholly-owned subsidiary of ARA, will manage the new fund.

ARA's assets under management as of Sept 30 amount to $23.4 billion, achieved on

the back of the continued growth of its private funds and reits platforms.