The Fresno County Employees’ Retirement Association was one of the investors in the recently closed Ares Management Corporation opportunistic US real estate fund, which raised $3.3bn (€3.03bn).
The pension fund disclosed in a board meeting document, that it made a $50m commitment to the Ares US Real Estate Opportunity Fund (AREOF) IV fund which closed last month.
The investment by Fresno County represents the pension fund’s full annual commitment to its real estate portfolio.
As previously reported, AREOF IV focuses on acquiring real estate assets out of distressed ownership structures and special situations, enhancing and repositioning undermanaged assets, and pursuing risk-mitigated development and redevelopment in desirable submarkets.
AREOF IV’s current portfolio includes the recent acquisition and redevelopment of the Hyatt Regency Orlando for $1.07bn, marking one of the largest hotel transactions of 2024 to date. In July 2023, the fund also provided preferred equity for the conversion of 55 Broad Street in New York City’s financial district, one of the largest office-to-residential conversions in New York City history.
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