Ares closes fifth European property fund at €1.8b

Global alternative asset manager Ares Management has announced the final close of Ares European Real Estate Fund V SCSp (EF V), at €1.78 bn.

According to the firm, this is the largest Ares real estate private equity fundraise to date, exceeding its target of €1.25 bn and representing an increase from Ares European Real Estate Fund IV, which closed at €1.1 bn in December 2014.

'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,' Benjamin added.

Through EF V, Ares said it was 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 UK and Spain.

Investors include 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 weighted towards the residential and office sectors in markets such as Germany, Spain, Ireland, the Netherlands, Austria and the UK.

Key transactions include a seven-building pan-European office portfolio, a scaled for-rent residential platform in Madrid, and the recent acquisition of a mixed-use building at 68 King William Street in London, Ares said.

The Ares Real Estate Group has around $11.9 bn (€10.7 bn) assets under management worldwide, as of June 30.


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