Ares Management Corporation has closed its fifth European real estate fund at 1.78 billion euros, beating its target of 1.25 billion euros. The fund targets investments in residential, office, industrial and mixed-use assets. In December 2014, Ares raised 1.1 billion euros for its fourth European real estate fund.
LOS ANGELES & LONDON–(BUSINESS WIRE)–Ares Management Corporation (NYSE: ARES) announced today the final closing of Ares European Real Estate Fund V SCSp (“EF V” or the “Fund”), at €1.78 billion. This is the largest Ares real estate private equity fundraise to date, meaningfully exceeding its target of €1.25 billion and representing an increase from Ares European Real Estate Fund IV, which closed at €1.1 billion in December 2014.
Through EF V, the team is continuing its investment strategy of acquiring undermanaged or underfunded assets out of distressed ownership structures or complex situations, and actively managing them through to exit into the institutional market. The Fund targets investments in residential, office, industrial and mixed-use assets, predominantly located in the largest and most liquid European markets including Germany, France, the U.K. and Spain.
EF V attracted a broad and diverse group of both existing and new investors, including pension funds, insurance companies, sovereign wealth funds, endowments, asset managers, private banks and family offices.
Approximately 40% of the Fund’s equity has already been committed to nine investments across a diverse portfolio of properties weighted towards the residential and office sectors in markets such as Germany, Spain, Ireland, the Netherlands, Austria and the U.K. Notable transactions include the acquisition of a seven-building pan-European office portfolio from a major European institution, the aggregation of a scaled for-rent residential platform in Madrid, Spain, and the recent acquisition of a prominent mixed-use building at 68 King William Street in the City of London, U.K.
“This latest fundraise is a testament to the tremendous market opportunity at hand and our team’s demonstrated track record of investing across market cycles, regions and property types,” said Bill Benjamin, Partner and Head of the Ares Real Estate Group. “We are grateful to our longstanding and new investment partners for their support and look forward to putting their capital to good use in quality real estate assets across Europe.”
“The Ares real estate senior team averages over 20 years of experience and has been working together for over 15 years,” said John Ruane, Partner and Co-Head of European Real Estate Equity of Ares. “We’ve invested together through cycles, and our consistent process and long tenure have been instrumental to our strong track record of delivering excess returns for our investors across our funds.”
Mr. Ruane added, “In real estate, it is important to think globally, but act locally. Ares has a local presence across all major European markets, which enables our team to directly source a wide range of unique investment opportunities in the marketplace.”
The Ares Real Estate Group manages comprehensive public and private equity and debt strategies, with approximately $11.9 billion of assets under management as of June 30, 2019. With its experienced team, along with its expansive network of relationships, the Real Estate Group capitalizes on opportunities across both real estate equity and debt investing strategies. The Ares Real Estate Group has 75 investment professionals with a global footprint in nine cities across U.S. and Europe.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager operating three integrated businesses across Credit, Private Equity and Real Estate. Ares Management’s investment groups collaborate to deliver innovative investment solutions and consistent and attractive investment returns for fund investors throughout market cycles. Our global platform had $142 billion of assets under management as of June 30, 2019 and employs more than 1,000 employees in over 20 offices across four continents. Please visit www.aresmgmt.com for additional information.