Ares Management has raised €625 mln for its latest value-added/opportunistic European flagship fund, Ares European Real Estate Fund V, EuroProperty has revealed.
The global alternative asset manager held a first close on the fund last week, meaning the company is halfway to achieving its final target of €1.25 bn.
News of the company’s plans to launch the fund was first revealed by PropertyEU in June 2017.
Ares does not comment on private fundraising initiatives. However, some public disclosures have been made by investors. For example, in November 2017, Texas Permanent School Fund said at a board meeting it had agreed to commit $75 mln to Ares European Real Estate Fund V, adding that the strategy was to target mostly office and apartment assets in France, Germany and the UK.
Ares is targeting non-core properties that can be redeveloped or recapitalised.
The first close comes amid an active time for Ares. As reported by PropertyEU last month, the firm bought a 21-asset portfolio in six countries from Prologis. The portfolio comprised a total of 450,930 m2 of built space as well as three land sites totalling 276,700 m2. The assets are located throughout France, Germany, the Netherlands, Poland, Spain and the UK.
Also in February, Ares bought for around €140 mln a majority interest in Parque Corredor Shopping Center in Madrid for Redevco Iberian Ventures, its joint venture with Redevco to make value-added and opportunistic investments on the Iberian Peninsula.
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This article first appeared in EuroProperty, a PropertyEU publication
