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China Everbright acquires US asset manager

EBA Investments, the real estate asset management arm of Hong Kong-listed China Everbright, has bought Texas-based Arrow, which specialises in real estate investment.
China Everbright acquires US asset manager

A Hong Kong-based spokeswoman for China Everbright declined to disclose the financial details of the acquisition.

Dallas, Texas-headquartered asset manager Arrow RE Holdings will be renamed to Everbright Arrow, according to a statement from Everbright.

The US firm will focus on revamping commercial projects that are situated in prime locations, according to the statement. “We plan to purchase asset pools and expand thereon to offer products with investment value for global investors,” the statement said.

It will also cater to global investors, including Chinese investors, according to the spokeswoman.

The acquisition is the first US operation for China Everbright, the spokeswoman said. “We do have some investments in the US as a limited partner, but not as an asset management platform like this.”

The move is in line with EBA Investments’ plan to create a global market presence, according to the statement.

China Everbright is part of the state-owned conglomerate China Everbright Group. It mainly targets corporate and high net worth clients for its various asset management businesses. They include primary market funds, mutual funds and structured financing and investment, according to the firm’s website.

Its primary market business includes private equity funds, venture capital funds, capital investment and financing and sector-focused funds.

As of the end of 2016, the firm’s fund management arm, China Everbright Assets Management, managed 15 funds with HK$10.8bn ($1.38bn) in assets, according to the website.

Dallas, TX-based Arrow, which specialises in retail property investment, manages $600m in assets, mainly on behalf of institutional investors. It has invested in 15 projects, with an internal rate of return of 25% for all exited projects, according to Everbright.

Part of Mark Allen.