Ares management is acquiring property manager Black Creek Group, which would bring Ares’ real estate assets under management to around $ 29 billion, Ares said Thursday.
Black Creek held approximately $ 11.6 billion as of March 31 in core and core plus real estate assets in two non-traded real estate investment trusts and various institutional funds, according to a joint press release. Some $ 6.4 billion of Black Creek’s total AUM is institutional, an Ares spokesperson said in an email.
The acquisition of Black Creek will give Ares additional perpetual capital in the form of $ 5.1 billion of non-traded REITs, as well as a retail distribution platform.
“We are delighted to join the Ares team and believe it is a highly complementary combination of people, investment products and resources,” said Raj Dhanda, CEO of Black Creek, in the Press release.
The deal is expected to close early in the third quarter of 2021. Certain terms of the deal, including cash to be paid by Ares, are withheld. Upon closing, Ares will give Black Creek approximately 3,496,353 shares of the operating group units of one of its operating companies, Ares Holdings, in addition to cash, SEC filing said. . The operating group’s units are expected to represent around 1% of Ares’ total equity outstanding as of May 19.
Ares has $ 207.2 billion in total assets under management.