Ares Management Corporation has raised $1.7bn (€1.4bn) for its third US opportunistic real estate Fund.

The manager said the amount raised for the Ares US Real Estate Opportunity Fund III fund at close exceeded its $1.5bn target as it received support from its incumbent investor base and attracted a number of new investors.

The predecessor fund and related vehicles raised $1bn.

Fund III, which targets distressed, repositioning, and selective development opportunities, has already made nine investments to date, the manager said.

Bill Benjamin, partner and head of the Ares Real Estate Group, said: “We are very pleased with the strong support from both new and existing investors in this fund series.

“Our investors recognize the importance of being aligned with a cycle-tested team that can effectively capitalize on the current market opportunity.”

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