If the transaction is signed off by regulators, the AuM of Manulife in the real estate sector will rise to a combined level of more than $5 billion.

Manulife Investment Management and Hong Kong-based ARCH Capital have agreed to form a strategic partnership through which, if approved by regulators, Manulife will take a significant minority equity stake in ARCH. The development would roughly double Manulife’s assets under management in the real estate field.

ARCH is a real estate private equity investment firm operating across Asia, including Greater China, Southeast Asia and Australia. Established in 2006, ARCH Capital has $2.3 billion of assets under management. In the case of Manulife, is has $2.9 billion of direct investments in Asian cities.

“The partnership aims to offer investors a comprehensive product suite across various strategies with broadened scale and presence. On a combined basis, the partnership’s total AuM exceeds $5 billion across 12 markets in Asia with on-the-ground presence, supported by over 60 investment and management professionals,” Manulife said in a statement yesterday.

ARCH Capital’s existing business management will not change. The financial terms of the partnership were not disclosed.

“This transaction is a tremendous complement to our ambitious Asia private markets and real estate growth strategy, and a strong amplification of our core strengths,” Christoph Schumacher, global head of real assets, private markets, Manulife Investment Management, said.