US group Ares Management Corporation said on Wednesday that one of its real estate funds has acquired a portfolio of 2,900 residential units across several German cities, including Berlin, Leipzig, Dresden, Essen and Dortmund.
The portfolio comprises large residential complexes as well as classic turn-of-the-century buildings, most of which are within close proximity of each location’s city centre. The portfolio’s total rentable area amounts to 210,000 m2. Financial details were not disclosed.
'This acquisition is a continuation of our longstanding investment strategy in the German multifamily residential market,' said Klaus Schmitz, managing director in the Real Estate Group of Ares. 'Ares continues to observe positive demographic and economic forces in the major German cities. Over the past year, funds managed by Ares have transacted on a total of €1 bn of gross asset value across sectors in the German real estate market, and we look forward to continuing to grow our portfolio in this key geography.'
Ares will continue to work with Forte, a Frankfurt-based real estate asset manager that Ares has partnered with since 2013 to acquire and manage its existing German residential investments, in order to add value through refurbishment, repositioning and vacancy reduction across the portfolio.
Last year Ares 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.