Global alternative investment manager Ares Management Corporation is reportedly evaluating the sale of a massive residential portfolio in Spain.
According to local press reports, Ares is testing investor appetite for a portfolio of 1,800 built-to-rent units valued at some €400 mln. If successful, the sale would be the largest this year in the Spanish housing market.
Earlier this month, Ares carried out the final closing of its European Property Enhancement Partners III SCSp (EPEP III) at €1.5 bn of commitments.
The final close was 50% higher than its €1 bn target, making it more than twice the size of its 2016 predecessor fund.
The fund’s value-add strategy focuses on acquiring institutional-quality, income-producing assets that have the potential for value enhancement.
EPEP III invests across key property types in Europe’s largest and most liquid markets and has over 30% of its capital deployed.
To date, the fund’s investment activity has been focused on logistics and residential, which are currently Ares’ highest conviction real estate sectors.
