Ares Management Corporation on Monday announced plans to acquire real estate asset manager GCP International, an international division of GLP Capital Partners.
The acquisition of GCP International will nearly double Ares Real Estate’s assets under management to $96 billion. As of June 30, Ares managed $51.5 billion in real estate assets.
The transaction is expected to close in the first half of 2025, subject to regulatory approval, and is valued at $3.7 billion. The acquisition eliminates GCP’s operations in Greater China. The parent company has offices in Shanghai, Tokyo, Hong Kong, Singapore, and Ho Chi Minh City, Vietnam, as well as in Europe, North America, and South America.
Bill Benjamin and Julie Solomon, co-heads of real estate at Ares, said in a statement: “Combining our companies’ platforms further strengthens our strong position in the industry and provides vertically integrated capabilities. This will strengthen Ares as a global market leader in real estate.”
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The business combination will increase Ares’ total assets under management from $447 billion as of June 30 to $492 billion. The acquisition will increase Ares’ real estate assets under management from 15% to 23% of the company’s total assets. Credit assets, which Ares specializes in, will account for 66% of total assets managed by the company, down from 72% currently.
The acquisition also expands the company’s geographic footprint, with assets under management in Europe, the Middle East and Africa increasing by 1 percentage point to 21% and assets under management in Asia Pacific increasing by 4 percentage points to 7%. becomes.
Michael Arougheti, CEO and President of Ares, said: “We have long admired GCP’s global real estate experience and its ability to power the economy of the future, including investing in and managing industrial, data center, and self-storage assets,” in a statement.
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Tags: Ares, Ares Management Corporation, Ares Real Estate, Bill Benjamin, GCP International, GLP Capital Partners, Julie Solomon, Michael Arrogetti, Real Estate
