March 11 (Reuters) - Hong-Kong based asset manager ESR

group said on Monday that it was selling its stake in

ARA Private Funds business in Australia, Singapore, South Korea

and the U.S. for an enterprise value of $270 million, as it

looked to reduce its debt.

Subsidiaries of ESR inked an agreement on March 8 to dispose

their stakes in the fund to U.S.-based Claymore Encore and

Singapore-based MPSK Pte. Ltd, which is an affiliate of

Japan-based Sumitomo Mitsui Finance and Leasing, it said.

ESR sees a gain of about $50 million from the disposal and

would primarily use the net proceeds from the transaction to

repay certain of its debt, it said.

In total, 22 funds are being divested in the transaction,

representing $9.8 billion in assets under management, the

company added.