Ares Management LLC is buying Area Property Partners LP, a real estate management firm that invests in North America, Europe and India, for an undisclosed amount.
Area, headquartered in New York, invests in real estate on behalf of corporate pension funds, government, sovereign wealth fund, insurance companies, foundations, endowments and high net worth individuals. The company has formed multiple funds with more than $14 billion in equity commitments from investors.
The deal gives Ares $8 billion in committed capital.
Los Angeles-based Ares is a global alternative asset manager and investment adviser with about $59 billion of committed capital under management. The company invests in senior debt, common equity and other areas. The acquisition comes at a time when the firm is reportedly considering filing for an initial public offering.
Hodes Weill & Associates acted as Area’s strategic adviser, while J.P. Morgan Securities LLC was Ares’ financial adviser.
Buyers have been paying attention to the real estate sector lately. In May, real estate investment trust Ashford Hospitality bought a resort in Key West, Fla. For $90 million, and in April, Annaly Capital Management Inc. (NYSE: NLY) agreed to buy a larger stake in commercial loan investor CreXus Investment Corp. (NYSE: CXS) for $720.8 million.
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