W&F October 2017

www.wealthandfinance-news.com 28 Wealth & Finance International - October 2017 important quality as a fiduciary fund manager is Integrity and most of the time, it simply means doing the right thing and putting the investor first on all matters.” Regarding the firm’s approach to new projects, and when undertaking new clients, Anthony again refers us to the belief of the company, in which the client always comes first. Going the extra mile for clients can be of great benefit to the firm and the customer, and this is why there is an emphasis placed on building trust and maintaining relationships with every client. “When it comes to fund management related matters, I always try to adhere to the ARA’s key motto of ‘investor first’ and apply the highest standard of fiduciary duty and care in managing any entrusted funds and assets with particular emphasis on compliance and prudence.” “Fund raising initiatives are vital to the success of ARA Korea, and I believe it is critical to look beyond just the investor’s return hurdles, and carefully design your services with a full understanding of the investor’s key drivers, goals and concerns on their investments, as well as their organizational vision, values, and goals. This would enable the manager to better align their interests with the investor and design a more optimal product, team and service arrangements for the client, ultimately leading to a more fruitful and lasting relationship as well as enhanced performance and results.” “Finding the best opportunities is integral when it comes to securing deals and making investments, followed by negotiating the best possible terms, and finally documenting and closing the deal with a pristine standard of care and prudence. When originating deals, I urge my team to pursue aggressively yet maintain control. From time to time, we must be reminded of the winner’s curse and recall that sometimes the best investment is no investment. A part of my job is to closely monitor the state of my teams and deals-in-progress. Alongside this, part of my role is to always remain alert and prepared, to pull the plug when a team gets overly attached to an initiative and deal terms get overheated beyond control and reason.” “Lastly, when it comes to striking partnerships or building relationships, I believe it is most critical to be fair and to create a win-win framework for both sides. To ensure this, each party must first fully understand the underlying motives and goals of the other party, ensuring that the interests of both parties are fairly aligned on a sustainable basis.” Working in such a competitive and dynamic industry, it is important for the company to stand out amongst its competitors, and as a result mark itself out as the best possible option for clients. Anthony highlights the proven track record of the firm, as well as the wealth of expertise and experience, all of which help ARA Korea distinguish itself from the rest. “ARA Korea is one of the very few real estate fund arrangement companies in Korea with a full suite of both local and global capabilities. With its proven track record, expertise, network, and team in Korea, ARA Korea is able to identify attractive investment opportunities in Korea and manage portfolio assets to their full potential for Korean investors, as well as overseas investors with allocation for Korea. Similarly, with its access to the extensive network and capabilities of ARA Group, ARA Korea is also able to identify attractive overseas investment opportunities across different regions and manage the portfolio assets to their full potential for Korean investors.” Looking ahead, there definitely seems to be a bright future for the firm, as Anthony outlines ARA Korea’s future plans and projects, noting how it continues to look for new investment opportunities. With a new business plan and new strategies ready to be executed, there is a lot to look forward to for Anthony. “Today we operate in a highly competitive environment, with increasing uncertainties and challenges ranging from geopolitical risks to tightening fee margins. Nevertheless, my optimism for ARA Korea’s future is stronger than ever, as we prepare and execute our new business plan and strategies.” “ARA Korea will continue to seek attractive investment opportunities within Korea for both Korean and overseas investors. We continue to witness a steady flow of core / core+ investment opportunities in the office sector. In the retail sector, we are seeing more value-add or opportunistic opportunities. The hospitality sector, on the other hand, continues to struggle, bombarded with overflow of supply and subdued tourism market. Logistics and rental apartment sectors continue to grow and gain momentum as established development/investment asset classes in Korea.” “Of all the asset classes, I see the most growth potential in the rental apartment sector. Korea residential market is currently undergoing a major transformation from the previously prevalent Jeonse lease model (under which a significant key money deposit ranging from 30%-80% of the property value is made in lieu of regular rent payments), to the Wolse lease model (which is the typical monthly rent model prevalent in most of the other developed countries). Given the surging price of Jeonse which has now reached as high as 80% of the property value in some areas, and the prolonging low interest rate environment, the rental apartment sector is quickly gaining ground in Korea. There is also an increasing number of developers and investors turning to the sector to seek opportunities to capitalize on the burgeoning market.” “ARA Korea was one of the first movers into the sector, and started investing in rental apartment development projects, along with a major Korean developer in 2014. Given the near non-existence of rental apartments in operation in Korea, ARA Korea decided to organically grow a portfolio by investing into development projects. The first project is due to complete later this year, with the second project being completed in 2019, and the team continues to seek new development/ investment opportunities in the sector. Once the total portfolio size reaches a certain level, ARA Korea plans to explore multiple exit strategies including listing of the portfolio on the Korea Stock Exchange, and a bulk portfolio sale to an institutional investor.” In his concluding comments, Anthony is keen to emphasize the unique positioning and standing of ARA Korea. He maintains it his mission to continue to grow the company beyond the boundaries of Korea. “Lastly, I would like to emphasize in particular the unique positioning and strength of ARA Korea especially when it comes to sourcing and bridging attractive overseas opportunities with Korean investors, as well as sourcing and bridging attractive opportunities in Korea (and broader Asia Pacific) with overseas investors. The team is uniquely equipped to source rare opportunities and handle highly complicated cross-border initiatives as efficiently and effectively as possible.” “Ultimately, I look forward to continuing to grow this company beyond the boundaries of Korea and to celebrate its success along the way.” Company: ARA Korea Limited Contact: Anthony Kang Email: [email protected] Address:20F, TWO IFC, 10, Gukjegeumyung-ro, Yeongdeungpo-gu, Seoul, 07326 Phone: +82 2 6137 3700 Website: www.ara-asia.com

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