Ares Management Corporation, the US firm, has put its funds to work via an Alternative Credit strategy to take a stake in UK developer, Quintain, which is owned by Lone Star Funds.
The deal sees a €895 mln (£755 mln) preferred equity commitment in Quintain, which owns and manages the 85-acre Wembley Park estate in London. Meanwhile, Lone Star Funds is kicking in £337 mln to the preferred equity instrument.
Ares said its Alternative Credit strategy was one of the largest investors in asset-based credit managing approximately $36.5 bn of AUM.
‘Quintain is delighted to have Ares’ backing as a new partner, whilst maintaining our longstanding partnership with Lone Star, to continue to develop the world-class Wembley Park estate which already is home to the largest multifamily/build-to-rent community in the UK,’ said James Saunders, CEO of Quintain.
Andrew Brentnall, head of residential investment at Savills, which advised on the transaction, said: 'The scale of investment is testament to the partners’ conviction about the strength of the fundamentals of the UK residential market, and regeneration benefits, and the critical need to deliver more new homes of higher quality, faster.'
