Ares Management Acquires Large German Residential Property Portfolio
LONDON--(BUSINESS WIRE)--Ares Management LLC announced today that it has acquired a 1,692-unit residential property portfolio comprised of 108,807 square meters located across several large cities in west and northwest Germany. The acquisition was made through a process led by insolvency administrator Pluta, and the portfolio provides significant diversified rental income.
“One fundamental that is driving this market is that the German residential housing sector continues to be highly affordable as the growth in rental rates has been outpaced by the growth in disposable income.”
“This transaction reflects Ares’ continued interest in the German residential market, which we believe offers strong fundamental value and excellent liquidity,” said Bill Benjamin, Senior Partner of the Ares Real Estate Group, and Head of Europe and India Real Estate. “One fundamental that is driving this market is that the German residential housing sector continues to be highly affordable as the growth in rental rates has been outpaced by the growth in disposable income.”
Ares will work with Forte, a Frankfurt-based real estate firm, to add value and reposition the portfolio. In addition, today’s transaction marks the first deal closed by Ares’ enhanced team in Germany and is part of its new program to roll-up distressed German residential properties given the country’s market depth and investment opportunities.
About Ares Management LLC
Ares Management LLC is a global alternative asset manager and SEC registered investment adviser with approximately $71 billion of committed capital under management and 700 employees as of December 31, 2013. Ares is headquartered in Los Angeles with professionals located across the United States, Europe and Asia and invests across the capital structure – from senior debt to common equity. Ares’ investment activities are managed by dedicated teams in its Tradable Credit, Direct Lending, Private Equity and Real Estate investment platforms. Ares Management was built upon the fundamental principle that each platform benefits from being part of the greater whole. This multi-asset class synergy provides its professionals with insights into industry trends, access to significant deal flow and the ability to assess relative value.
Forte is a Frankfurt-based real estate firm focusing on value-add and opportunistic investments in German residential and office properties.