Ayala unit to raise $125M from Asian investors

Arch Capital Management Co. Ltd., an international investment fund led by Philippine conglomerate Ayala Corp. and its property arm Ayala Land Inc. (ALI), is close to raising $125 million in additional funds from third party investors based in Asia.

ALI president Jimmy Ayala said Arch Capital is now in the final stages of negotiations with several groups of investors who have signified interest to infuse capital into the fund management firm following a roadshow held in Asia late last year.

Ayala said the additional money will be used to fund investments in property markets in China, India and Thailand.

He said Arch Capital has two projects in Bangkok, one in Beijing and another in Macau.

Arch Capital develops medium to high-end residential/condominium buildings and invests in office and retail space.

Ayala Corp. and ALI jointly invested up to $75 million in Hong Kong-based Arch Capital. The investment is part of the Ayala group’s broader strategy to expand its presence and explore new growth opportunities overseas.

The investment was made through wholly-owned subsidiary Ayala International Pte. Ltd (AIPL), which has direct property investments in the United States and Asia, including Japan, Australia, Hong Kong, Thailand and Malaysia.

Aside from the Ayala group, other investors of Arch Capital include Great Arch Co. of real estate expert Richard Yue, who has more than 17 years of experience in investing some $3 billion in Asian real estate.

The emergence of real estate private equity funds and real estate investment trusts (REITs) is viewed as a major channel for global capital into the rapidly developing Asian real estate markets.