Ares raises $1.8bn for tenth US value-add real estate fund

Ares raises $1.8bn for tenth US value-add real estate fund

Ares Management Corporation has announced the final close of its tenth U.S. value-add real estate fund, Ares U.S. Real Estate Fund X, with $1.8 billion of commitments, exceeding the fund’s $1.5 billion target.

Ares said the oversubscribed fund is more than 75% larger than its predecessor fund, which closed at $1.04 billion in November 2018.

“With the closing of the tenth fund in this series, we are proud of the continued strong support we received from our longstanding investors along with the significant demand from our new investors,” said David Roth, Partner and Co-Head of Ares U.S. Real Estate.

“We believe this support validates the trust we have built with our investors and the track record we have generated by managing this strategy over multiple vintages and market cycles. We are confident in our ability to continue driving compelling risk-adjusted returns for our investors through the combination of our team’s deep market and sector coverage and a disciplined, cycle-tested approach to investing in attractive sectors, such as multifamily and industrial,” he added.

“We are well positioned to capitalize on new opportunities created by the current economic environment and to leverage our experience and longstanding relationships to access potential investments,” said Jay Glaubach, Partner and Co-Head of U.S. Real Estate Investments.

“The Fund’s initial assets, which are focused on durable sectors and markets, stand to continue to benefit from long-standing secular trends,” said Howard Huang, Partner and CIO of Diversified U.S. Equity. “We look forward to building a diverse portfolio that delivers current income to our investors while implementing longer-term value-add enhancements to our properties.”

”As part of an integrated global real estate team, the U.S. value-add strategy applies a cycle-tested approach to investing in high-quality real estate assets with in-place cash flows and defined opportunities to enhance property values. Through U.S. X, the Ares Real Estate team continues to acquire and improve institutional quality assets in historically attractive sectors, such as multifamily and industrial, with select investments in other major and adjacent property types to generate both income and appreciation for investors,” said the company.