Ares Closes Oversubscribed Tenth Value-Add U.S. Real Estate Fund at $1.8bn

Ares Management has held the final closing of its Ares U.S. Real Estate Fund X.  It was oversubscribed with $1.8bn of commitments relative to its $1.5bn target and is more than 75% larger than its predecessor fund, which closed at $1.04bn 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.

Roth Elaborates: “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.”

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“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.

Source: Business Wire

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