Ares Management Corporation raised $3.3 billion (€3.1 billion) to make secondary investments in various types of real estate and real estate-related entities, including acquiring limited partnership positions in existing funds .
The manager said the amount raised for the real estate secondary includes commitments to Landmark Real Estate Fund IX (LREF IX), general partner commitments and partnership vehicles.
As previously reported, the Nebraska Investment Council “acquires older assets at attractive discounts to market prices and builds highly diversified portfolios” for investors. We contributed $63 million to LREF IX, a fund with the purpose of The Oklahoma State Teachers’ Retirement System also told IPE Real Assets that it has approved a $100 million contribution to the fund.
LREF IX recently made an equity investment in a data center complex in Portland, Oregon through a recapitalization agreement.
Data centers are the second largest real estate asset class at Landmark Fund IX, accounting for 21% of total assets. This is exceeded only by industrial property at 38%.
Jamie Sunday, partner and co-head of Ares’ $8 billion real estate distribution business, said: “Following record transaction volumes in 2022, real estate market growth continues to grow as fund sponsors look to manage with short-term debt, following record transaction volumes in 2022. “The secondary market is poised for continued growth.” Reduce maturities while addressing liquidity needs across traditional fund vehicles.
“We share investors’ strong enthusiasm and believe that the current turmoil and volatility in the real estate market provides a highly attractive environment for large and experienced secondary managers. ”
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