Ares Management seals $3.8bn Automotive buyout from Brookfield

Ares Management has bought specialist real estate company Automotive from a Brookfield private real estate fund for $3.8bn.

Automotive provides tailored sale-leaseback capital to automotive dealers in the US and Canada to support them in acquiring new locations and upgrading facilities.

The company owns more than 250 operationally essential real estate assets that are structured as long-term triple net leases.

Ares said the deal meant it had invested in more than 1,200 assets totaling about $7.2bn of gross asset value in the US and Europe over the last 15 months.

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That includes net lease investments spanning retail, industrial and office assets leased to tenants with varying credit profiles.

Joel Holsinger, partner and co-head of alternative credit at the firm, said, “Our net lease capabilities sit at the nexus of our leading credit and real estate teams, providing us with a 360-degree view through which we can offer highly flexible net lease solutions.

“We are excited by growing market demand from sponsors and companies seeking a creative partner to help them unlock the value of their real estate assets. We are committed to being a partner of choice to them.”

Ares’ real estate group had about $41.2bn under management at the start of the year.

The firm’s wider investment AUM, which covers private equity, credit, RE and infra, stood at about $306bn at that time.

Source: Alt Assets

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