Ares Management, L.P. (NYSE:ARES) announced today the final closings of
two real estate funds, both of which were significantly oversubscribed.
The $1.3 billion Ares European Real Estate Fund IV, which will target
investments in residential, retail, office and industrial real estate
located in the leading European markets including the U.K., Germany, and
France, exceeded its initial target of $1 billion. The $824 million Ares
US Real Estate Fund VIII, which will target value-add investments in
income-producing property types such as multifamily, industrial, retail,
hotel and office in major markets across the United States, exceeded its
initial target of $750 million.
The Ares Real Estate Group is comprised of funds focused on
opportunistic and value-add investing in both the U.S. and Europe and
also includes a global debt investing business. The new funds will seek
to continue the strong performance of the predecessor funds and apply
the longstanding real estate investing expertise of the Ares Real Estate
Group.
“The fact that both successor funds were oversubscribed demonstrates the
confidence that existing and new investors of all types have in Ares
Management, our respective investment teams as well as the prospects for
both opportunistic and value-add real estate strategies,” said Michael
Arougheti, President and Senior Partner of Ares Management. “Our
investors are also relying on Ares to continue to be able to source
proprietary investment opportunities by tapping into the power of our
firm-wide platform.”
“The Ares European Real Estate team continues to be well positioned to
meet the growing needs of our investors to find proven opportunistic
investments through proprietary deal flow and we possess a long track
record of successfully working with joint venture partners across
Europe’s biggest markets,” said Bill Benjamin, Senior Partner of the
Ares Real Estate Group. “We would like to thank our investors in prior
funds as well as our new investors for their confidence in our
consistent investment approach and discipline.”
“We appreciate the continued support of our existing investors and
welcome several new partners as our U.S. Value-Add strategy has been
successfully time-tested through several market cycles,” said Steven
Wolf, Senior Partner of the Ares Real Estate Group. “We believe that the
market fundamentals for value add real estate investing are very strong
and that the additional insights on credit provided by the Ares platform
position us well to generate attractive returns for our investors.”
Ares Management’s Real Estate Group manages a variety of public and
private equity and debt strategies, with approximately $9.6 billion of
assets under management as of September 30, 2014 on a pro forma basis
including these two fund closings. The Group focuses on lending to and
investing in properties that have been under-managed or need
repositioning in core markets. The Group provides investors access to
its capabilities through U.S. and European real estate private equity
comingled funds, separately managed accounts and other fund types, as
well as through its publicly traded commercial mortgage REIT, Ares
Commercial Real Estate Corporation (NYSE:ACRE). ACRE is focused on
direct lending on properties owned by commercial real estate sponsors
and operators and, through a subsidiary, originates and services
mortgage loans through a variety of U.S. Government-sponsored programs.
About Ares Management
Ares Management, L.P. (NYSE:ARES) is a leading global alternative asset
manager with approximately $80 billion of assets under management and
approximately 750 employees in more than 15 offices in the United
States, Europe and Asia as of September 30, 2014. Since its inception in
1997, Ares has adhered to a disciplined investment philosophy that
focuses on delivering strong risk-adjusted investment returns throughout
market cycles. Ares believes each of its four distinct but complementary
investment groups in Tradable Credit, Direct Lending, Private Equity and
Real Estate is a market leader based on assets under management and
investment performance. Ares was built upon the fundamental principle
that each group benefits from being part of the greater whole.
Forward-Looking Statements
Statements included herein may constitute “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act of
1995, which relate to future events or our future performance or
financial condition. These statements are not guarantees of future
performance, condition or results and involve a number of risks and
uncertainties. Actual results may differ materially from those in the
forward-looking statements as a result of a number of factors, including
those described from time to time in our filings with the Securities and
Exchange Commission. Ares Management, L.P. undertakes no duty to update
any forward-looking statements made herein.
Copyright Business Wire 2015