Ares Management Corporation has so far raised €573m for its value-add European property fund, according to an investor’s meeting document.
The New Mexico State Investment Council (SIC), which approved a $75m (€61.6m) commitment to the Ares European Property Enhancement Partners III this week, told IPE Real Assets that Ares is expecting to hit its €1bn capital raise target in the spring of this year.
“There are many assets in Europe that can be acquired at a discount, which makes it attractive. The fund will have a significant portion of its return, 40% to 50%, coming from income which the investor sees as a benefit,” the sovereign wealth fund told IPE Real Assets.
In its meeting document, New Mexico said Ares is in the process of completing €243m of industrial transactions €243m in Germany, UK, Spain and Poland as well as a €155m investment in multifamily/student housing in Germany and UK and a €35m multi-tenant office building deal in Paris.
New Mexico said it has approved a $125m commitment to the Cerberus Real Estate Debt Fund.
New Mexico said the fund which seeks to raise $750m has already raised $460m, prior to the sovereign wealth fund’s commitment.
The fund, which will be considering real estate debt opportunities in both Europe and the US, will be looking at a variety of investment structures including mezzanine, first mortgages, performing loans, commercial mortgage-backed securities and special situations.
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