Ares Management LP (NYSE: ARES) is buying a majority stake in real estate developer London Square for about £110 million (U.S. $188.7 million).

London Square is a London-based residential real estate developer and home builder. The group's projects include luxury townhouses in Fulham and a development in Wimbledon. The company is being sold by U.K. private equity firm Graphite Capital, which invested about $85 million.

Ares plans to invest along London Square's management team to develop the company, targeting construction of 1,000 homes per year in the London area. The transaction is expected to close by the end of July.

Since going public in May, New York asset manager Ares also recently agreed to buy Keltic Financial Services LLC, a group that provides asset-based loans to small and middle-market companies. 

Recent real estate tractions include RLJ Lodging Trust's (NYSE: RLJ) acquisition of the Hilton Cabana Miami Beach in June, and Biofuel Energy Corp.'s (Nasdaq: BIOF) purchases of JBGL Builder Finance LLC and subsidiaries of JBGL Capital LP, which develop land for residential purposes and provide construction loans. 

For more on interest in Europe, see "Transatlantic Transactions." 

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