Los Angels-based Ares Management is acquiring Area Property Partners to create a global real estate group with $8 bn (鈧�6.1 bn) of committed capital.
Los Angels-based Ares Management is acquiring Area Property Partners to create a global real estate group with $8 bn (鈧�6.1 bn) of committed capital.
Ares announced on Friday that it has signed a definitive agreement to buy Area, a real estate management firm investing across North America, Europe and India.
The transaction includes the acquisition of the minority stake in Area held by National Australia Bank. The terms of the transaction were not disclosed, and the transaction remains subject to customary closing conditions including regulatory and investor approval.
Lee Neibart, CEO of Area, will become a senior partner of the Ares Real Estate Group, and joint global co-head of Area Real Estate alongside existing senior partners.
William Benjamin, Area鈥檚 head of Europe and India, will become a senior partner of the combination and continue as head of Europe and India real estate.
'Area鈥檚 expertise in value-add and opportunistic equity investing and mezzanine debt will complement our real estate group鈥檚 current capabilities in real estate private lending,' said Tony Ressler, senior partner and chairman of the executive committee of Ares Management.
All existing Area investment vehicles will continue to be managed by legacy Area investment professionals in their capacities at Ares.
William Mack, founder of Area, announced he will be stepping down as chairman to focus on actively managing his family鈥檚 real estate initiatives, investments and philanthropic pursuits. Richard Mack, North America CEO of Area, will become a senior advisor to the Ares Real Estate Group.
