– Ares announced the final closing of Ares U.S. Real Estate Opportunity Fund IV, L.P. (“AREOF IV”).
– Ares raised over $3.3 billion in equity commitments to invest in opportunistic U.S. real estate.
– This marks Ares’ largest real estate closed-end fundraise, significantly higher than the $2.2 billion raised for the predecessor fund.
– Combined with Ares’ European real estate strategy, Ares now has $5.5 billion of opportunistic capital for U.S. and European investments.
– AREOF IV focuses on acquiring distressed real estate assets, enhancing undermanaged assets, and pursuing risk-mitigated development in desirable submarkets.
– David Roth, C.F.A., Co-Head of Ares U.S. Real Estate, noted the stabilization of capital markets is creating significant opportunities for the Fund.
– The Fund has already deployed capital into significant investments, including the $1.07 billion redevelopment of the Hyatt Regency Orlando.
– AREOF IV also supported the conversion of 55 Broad Street in New York City, one of the largest office-to-residential projects in the city’s history.
– Investors in the Fund include a diverse mix of sovereign wealth funds, public and corporate pensions, insurance companies, endowments, family offices, and private banks across multiple regions.
– Andrew Holm and Jay Glaubach, Co-Heads of Ares U.S. Real Estate Investments, stated, “Meaningful enhancements to strengthen our origination and execution capabilities, particularly within the sectors and markets that we find most attractive, have enabled us to deploy a significant portion of the Fund in recent investments.”
– Ares Real Estate oversees $52 billion in assets under management with more than 270 investment professionals in 17 local offices in the U.S. and Europe (as of June 30, 2024).
