M and A
Global Alternatives Firm To Buy New York-Based AREA Property Partners
Los Angeles, CA-based Ares Management, the global alternative asset manager and SEC-registered investment advisor, is acquiring AREA Property Partners, a New York-based real estate management firm investing across North America, Europe and India.
The transaction includes the acquisition of the minority stake in AREA held by National Australia Bank. Terms of the transaction were not disclosed and the transaction remains subject to customary closing conditions, including regulatory and investor approval.
As part of the transaction, Lee Neibart, chief executive of AREA, will become a senior partner of the Ares Real Estate Group. He will join John Bartling, a senior partner, as global co-head of the group.
William Benjamin, AREA’s head of Europe and India, will take on an additional role as a senior partner of the Ares Real Estate Group, while Richard Mack, AREA’s CEO for North America, becomes a senior advisor.
Meanwhile, William Mack, founder of AREA, is stepping down as chairman of the firm to focus on managing his family’s real estate initiatives, investments and philanthropic pursuits.
"Combining the complementary skill sets and asset classes of both firms will yield superior sourcing opportunities and enhanced credit analysis and information flow that will enable us to bring new products to investors while offering creative debt and equity financing solutions to the marketplace," Neibart said.
All existing AREA investment vehicles will continue to be managed by AREA investment professionals in their roles at Ares Management.
Ares Management had some $59 billion of committed capital under management and some 560 employees as of March 31, 2013. The Ares Real Estate Group will have about $8 billion of committed capital, and over 70 investment professionals, upon completion of the transaction.
AREA Property Partners serves government and corporate pension funds, sovereign wealth funds, insurance companies, foundations, endowments and high net worth individuals. Besides New York, the firm has offices in Atlanta, GA, San Francisco, CA, London, Paris, Luxembourg and Mumbai.
