(Corrects company name in paragraph 5 to Straits Trading)
SINGAPORE Oct 28 Singapore conglomerate Straits Trading Co Ltd will acquire a 20.1 percent stake in Singapore-listed ARA Asset Management Ltd for S$294.4 million ($238 million) from Cheung Kong Investment Company and a firm fully-owned by ARA's Chief Executive John Lim.
"This strategic alliance in real estate will enable STC to unlock value from its property business and create new avenues to expand and diversify its real estate portfolio," Straits Trading said in a statement on Monday. ARA also made the announcement in a separate statement.
ARA is an affiliate of Hong Kong tycoon Li Ka-Shing's Cheung Kong Group and manages a number of real estate investment trusts.
"ARA will also manage STC's entire investment property portfolio (other than hospitality-related assets) as a separate account subject to signing of definitive agreements," STC said.
Straits Trading will also form a co-investment vehicle with John Lim.
Trading in shares of ARA and Straits Trading was halted ahead of the announcement. ($1 = 1.2365 Singapore dollars) (Reporting by Rujun Shen and Kevin Lim; Editing by Rachel Armstrong)