{"id":1004072627,"date":"2013-05-13T07:15:23","date_gmt":"2013-05-13T15:15:23","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004072627"},"modified":"2022-12-08T09:42:00","modified_gmt":"2022-12-08T17:42:00","slug":"ares-management-acquiring-area-property-partners","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/ares-management-acquiring-area-property-partners\/","title":{"rendered":"Ares Management Acquires AREA Property Partners"},"content":{"rendered":"<p><em>By Keith Loria, Contributing Editor<\/em><span style=\"font-size: 13px;line-height: 19px\">\u00a0<\/span><\/p>\n<p>In one of the industry\u2019s biggest transactions of 2013, Ares Management L.L.C., a Los Angeles-based investment firm, has signed a definitive agreement to acquire AREA Property Partners, L.P., a top-tier real estate management firm investing across North America, Europe and India.<span style=\"font-size: 13px;line-height: 19px\">\u00a0<\/span><\/p>\n<p>The acquisition will bring Ares Real Estate Group\u2019s total committed capital to $8 billion once AREA\u2019s $6 billion in real-estate equity investments in North America and Europe is added to its portfolio. The transaction also includes the acquisition of the minority stake in AREA held by National Australia Bank.<\/p>\n<p>\u201cAREA\u2019s expertise in value-add and opportunistic equity investing and mezzanine debt will complement our real estate group\u2019s current capabilities in real estate private lending,\u201d Tony Ressler, senior partner &amp; chairman of the Executive Committee of Ares Management, said in a company statement.\u00a0 \u201cFurther, the entire Ares Management platform will greatly benefit from AREA\u2019s geographic reach, market insights, industry relationships and seasoned investment professionals\u2014especially Lee Neibart in the U.S. and Bill Benjamin in Europe.\u201d<span style=\"font-size: 13px;line-height: 19px\">\u00a0<\/span><\/p>\n<p>AREA Property Partners was founded in 1993 by prominent U.S. real estate investor William Mack and Apollo Global Management, L.L.C., under the name Apollo Real Estate Advisors. Over the past 20 years it has overseen the investment of multiple real estate funds and joint ventures, investing nearly $14 billion in more than 600 transactions with an aggregate value in excess of $70 billion.<\/p>\n<p>Mack announced that he will be stepping down as Chairman of AREA to focus on actively managing his family\u2019s real estate initiatives, investments and philanthropic pursuits. Meanwhile, his son Richard Mack, AREA\u2019s North America CEO, will become a senior advisor to the Ares Real Estate Group.<span style=\"font-size: 13px;line-height: 19px\">\u00a0<\/span><\/p>\n<p>By bringing AREA into its fold, Ares Management becomes a sizeable player in the industry and will be adding some of AREA\u2019s top leadership executives to its team.<span style=\"font-size: 13px;line-height: 19px\">\u00a0<\/span><\/p>\n<p>Neibart, AREA\u2019s CEO, will become a senior partner of the Ares Real Estate Group and become global co-head of the group with John Bartling, a senior partner of the Ares Real Estate Group. Additionally, Benjamin, AREA\u2019s head of Europe and India, is set to become a senior partner of the Ares Real Estate Group and will continue as head of Europe and India Real Estate.<\/p>\n<p>\u201cAs we transition to this exciting new phase of joining Ares, we want to acknowledge Bill Mack for his foresight, investment insights and unwavering integrity, which shaped the philosophy that has guided our firm over the past two decades.\u00a0 It was his vision and long-term commitment to building AREA that led to this opportunity to partner with Ares,\u201d Neibart said in a statement. \u201cCombining the complementary skill sets and asset classes of both firms will yield superior sourcing opportunities and enhanced credit analysis and information flow that will enable us to bring new products to investors while offering creative debt and equity financing solutions to the marketplace.\u201d<span style=\"font-size: 13px;line-height: 19px\">\u00a0<\/span><\/p>\n<p>Neither Ares Management nor AREA Property Partners was available to comment further, but many in the industry have expressed their opinions.<span style=\"font-size: 13px;line-height: 19px\">\u00a0<\/span><\/p>\n<p>\u201cMy feeling on this is that this is a statement of confidence in the real estate market on the part of Ares and the apparent position of the former owners of AREA that now is the time to take money off of the table to prepare for the rest of new business cycle,\u201d Matt Bear, a principal of Avison Young, told <em>Commercial Property Executive<\/em>.<span style=\"font-size: 13px;line-height: 19px\">\u00a0<\/span><\/p>\n<p>The deal remains subject to customary closing conditions including regulatory and investor approval.<span style=\"font-size: 13px;line-height: 19px\">\u00a0<\/span><\/p>\n<p>Proskauer lawyers advising Ares Management on the transaction were partners Monica Shilling (Los Angeles, M&amp;A), Sean Hill (Boston, Private Investment Funds), Michael Woronoff (Los Angeles, M&amp;A) and Arnold May (Boston, Tax) and associates Jonathan Benloulou, Joyce Men (Los Angeles, Corporate) and Anne Kim (Los Angeles, Tax).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In one of the industry\u2019s biggest transactions of 2013, Ares Management has signed a definitive agreement to acquire AREA Property Partners, the top-level real estate management firm investing across North America, Europe and India.<\/p>\n","protected":false},"author":451,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21783,21742],"tags":[],"class_list":["post-1004072627","post","type-post","status-publish","format-standard","hentry","category-investment","category-latest"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - 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