Ares Management Corporation has acquired US car dealership specialist Capital Automotive from a Brookfield private real estate fund for $3.8bn (€3.3bn).

Capital Automotive is a self-managed real estate company that provides sale-leaseback capital to automotive dealers in the US and Canada to support them in acquiring new locations and upgrading facilities.

The company owns a diversified portfolio of over 250 real estate assets that are structured as long-term triple net leases.

Ares said the acquisition, which was made by funds managed by its alternative credit strategy and real estate arm, brings its total net lease gross asset value in the US and Europe to more than $7bn over the last 15 months

Joel Holsinger, partner and co-head of alternative credit at Ares, said: “We are excited by growing market demand from sponsors and companies seeking a creative partner to help them unlock the value of their real estate assets. We are committed to being a partner of choice to them.”

David Roth, partner and co-head of US real estate at Ares, said: “This is an area of the market that plays to Ares’ strengths as a platform given the different disciplines that are in constant collaboration. We believe that our ability to apply a hybrid real estate and credit lens to assess opportunities is a key differentiator.

“We provide our partners with the advantages of scale and experience to deliver a full suite of solutions that are unconstrained by asset type, tenant profile and structure.”

Jay Ferriero, president and CEO of Capital Automotive, said: “I’m excited to be partnering with the team at Ares and believe that together we will be well-positioned to take advantage of the expanding opportunity set in the net lease market.

“Beyond the competitive edge of the Ares platform and the experience of the team, the strength of this partnership is reinforced through our shared commitment to accelerating positive social impact.”

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