Property tycoon Gordon Tang and family to acquire managers and 19% of ARA H-Trust

SINGAPORE – ARA Asset Management, owner of ARA US Hospitality Trust’s (ARA H-Trust) sponsor, has agreed to sell the trust’s managers to Acrophyte Asset Management.

The latter is wholly owned by property tycoon Gordon Tang and his wife Celine, the trust’s managers announced on May 27.

Stapled group ARA H-Trust comprises ARA US Hospitality Property Trust, which is managed by ARA Trust Management, and ARA US Hospitality Management Trust. The latter has a trustee-manager called ARA Business Trust Management (USH).

Acrophyte intends to acquire all 1.5 million shares in the capital of ARA Trust Management and all 50,000 shares in the capital of USH.

Acrophyte will then become the stapled group’s new sponsor.

In addition, ARA H-Trust’s sponsor, ARA Real Estate Investors 23, is proposing to sell 110.2 million stapled securities of the trust to Acrophyte Limited. The latter is wholly owned by the children of Mr Tang and his wife – Jialei and Jialin.

This translates to a 19 per cent stake in ARA H-Trust, with the purchase increasing the Tangs’ holding to 28.3 per cent.

Acrophyte has been a prominent real estate player since the 1990s, noted ARA H-Trust’s managers. The proposed transaction marks Acrophyte’s first venture into Reit management.

Acrophyte is affiliated with real estate player SingHaiyi, which was formerly listed on the Singapore Exchange. In 2023, Mr Tang and his wife took construction and property group Chip Eng Seng private.

ARA H-Trust’s managers said the proposed transactions are estimated to be completed in the second to third quarter of 2024.

Mr Lee Jin Yong will remain as chief executive of the managers following the proposed transactions.

Stapled securities of ARA H-Trust closed down 1.8 per cent to 28 US cents on May 27, before the announcement.

THE BUSINESS TIMES