Ares Management buys AREA Property Partners
Global alternative asset manager Ares Management has acquired AREA Property Partners, a New York-headquartered real estate management firm investing across North America, Europe and India.
Details of the transaction were not disclosed and the purchase remains subject to regulatory and investor approval. According to a release, the acquisition will see Ares Real Estate Group (AREG) boost its committed capital to $8 billion, with more than 70 investment professionals. It also facilitates the exit of National Australia Bank from its minority investment in the company.
AREA CEO Lee Neibart will become a senior partner of AREG, working alongside existing senior partner John Bartling. Together they will act as the global co-heads of the group. AREA's Head of Europe and India William Benjamin will also become a senior partner of AREG and continue as Head of Europe and India Real Estate.
William Mack, founder of AREA, announced he will be stepping down as Chairman of AREA to focus on actively managing his family's real estate initiatives, investments and philanthropic pursuits. Richard Mack, North America CEO of AREA, will become a senior advisor to AREG.
"AREA's expertise in value-add and opportunistic equity investing and mezzanine debt will complement our real estate group's current capabilities in real estate private lending," said Tony Ressler, senior partner and chairman of the executive committee of Ares Management.
AREA, which has an office in Mumbai, has overseen the establishment of multiple real estate funds and joint ventures totaling $14 billion in equity commitments globally. Its funds have collectively invested in over 600 transactions with an aggregated value in excess of $70 billion. As of March 31, AREA had approximately $6 billion of committed capital under management.
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