Singapore-listed ARA Asset Management has agreed to buy Macquarie Real Estate Korea, a real estate management company based in Seoul, South Korea, for an undisclosed sum.

Macquarie Real Estate Korea manages two privately-held Korean Real Estate Investment Trusts (K-Reits), which together manage assets worth 588.4 billion won (S$700.2 million), ARA said in a filing to the Singapore Exchange on Monday.

ARA will also acquire a 10.02 per cent equity interest in one of the K-Reits as part of the transaction.

"This acquisition has allowed ARA to gain a foothold in South Korea, enabling the group to capitalize on the tremendous real estate opportunities in Asia's fourth largest economy by GDP," said ARA group chief executive officer John Lim.

ARA's assets under management as at 30 September 2013 was $23.4 billion. The company is an affiliate of Hong Kong's Cheung Kong group with businesses in Reits, private real estate funds, real estate management services and corporate finance advisory services.