Transaction Expands Ares Real Estate
Capabilities and Reach in Key Industrial Market
Ares Real Estate to Further Capitalize on
Long-Term Structural Tailwinds as One of the Largest Vertically
Integrated Industrial Platforms Across North America
Ares Management Corporation (NYSE: ARES) (“Ares”) announced
today that one of its subsidiaries has entered into a definitive
agreement to acquire 100% of Walton Street Capital Mexico S. de
R.L. de C.V. and certain of its affiliates (“Walton Street
Mexico”), a leading real estate asset management platform focused
primarily on the industrial sector with US$2.1 billion in assets
under management as of June 30, 2024, from Walton Street Capital,
L.L.C. (“Walton Street”).
Led by Federico Martin del Campo, Managing Partner and CEO, the
Walton Street Mexico team consists of over 15 investment
professionals that have transacted in industrial and other major
real estate sectors in Mexico for over 20 years. During this time,
the team has established itself as a leader in industrial real
estate in Mexico. Since 2010, affiliates of Walton Street Mexico
have invested across key markets through the acquisition and
development of more than 51 million square feet of industrial real
estate in over 250 separate properties and have attracted tenants
in the country’s largest industrial sectors.
Ares Real Estate has thoughtfully grown its platform over time
with a focus on expanding in key geographies and sectors that are
positioned to benefit from attractive long-term structural
tailwinds. Throughout this time, the team has maintained high
conviction in the industrial real estate sector, establishing a
total industrial portfolio of $28.1 billion and over 230 million
square feet across the U.S. and Europe, as of June 30, 2024.
Following the transaction, Ares Real Estate will leverage the
Walton Street Mexico team’s two decades of experience and local
networks as it seeks to continue to grow its industrial footprint
globally. The Walton Street Mexico team will gain the advantage of
being part of Ares’ global Real Estate team, which oversees $52
billion in assets under management and has more than 270 investment
professionals with leading capabilities across debt and equity
strategies, major real estate sectors and geographies.
“We are excited to announce this transaction and believe that
the Walton Street Mexico team will bring great insights to Ares as
we continue to grow our leading global industrial real estate
platform,” said Michael Arougheti, Chief Executive Officer and
President of Ares. “We believe that Federico and the team are
aligned with our values and will provide a distinctive edge to the
Ares Real Estate team. We are seeing a meaningful shift in supply
chain dynamics globally with Mexico emerging as an attractive
location for skilled manufacturing and we believe that these trends
will continue to increase demand for warehouse space in the
country.”
“On behalf of the broader Ares Real Estate team, we want to
welcome Federico and the Walton Street Mexico team to Ares,” said
David Roth, Co-Head of Ares U.S. Real Estate. “We have
strategically grown our industrial real estate platform over the
last few years with partnership from Dave Fazekas, Head of Ares
Industrial Management, and the team, and believe that adding
additional capability in Mexico is an important step to enhance our
global offering. We believe that we are entering Mexico at an
opportune time to capitalize on continued growth and outperformance
of the industrial real estate sector in North America.”
“Walton Street is proud to have led the development of Walton
Street Mexico into one of the preeminent private equity real estate
managers in Mexico,” said Jeff Quicksilver, Co-Founder and Managing
Partner of Walton Street Capital. “The strategic timing of the sale
allows our team to continue its focus on the growth of our U.S.
real estate equity and debt investment platforms.”
“We are excited to be joining Ares, which is well recognized as
a leading global alternative investment manager, and owner and
operator of real estate,” said Mr. Martin del Campo. “We believe
there are cultural and skill set synergies between our two teams,
which will support our ability to execute on our strategic growth
objectives in Mexico. We look forward to working alongside Ares’
global real estate team in addressing an attractive industrial
investment opportunity.”
The transaction is expected to be immediately accretive to Ares’
after-tax realized income per share of Class A and non-voting
common stock. The transaction is expected to close in the fourth
quarter of 2024 and is subject to customary closing conditions,
including regulatory approvals.
Latham & Watkins LLP served as legal counsel to Ares and
Kirkland & Ellis LLP and Mayer Brown LLP served as legal
counsel to Walton Street in connection with the transaction.
Berkshire Global Advisors L.P. served as financial advisor to
Walton Street.
About Ares Management Corporation Ares Management
Corporation (NYSE:ARES) is a leading global alternative investment
manager offering clients complementary primary and secondary
investment solutions across the credit, real estate, private equity
and infrastructure asset classes. We seek to provide flexible
capital to support businesses and create value for our stakeholders
and within our communities. By collaborating across our investment
groups, we aim to generate consistent and attractive investment
returns throughout market cycles. As of June 30, 2024, Ares
Management Corporation's global platform had over $447 billion of
assets under management, with more than 2,950 employees operating
across North America, Europe, Asia Pacific and the Middle East. For
more information, please visit www.aresmgmt.com.
About Walton Street Capital, L.L.C. Walton Street is a
private real estate investment firm that manages a diversified
equity and debt platform on behalf of its global institutional
clients. Since its inception in 1994 through its affiliates, Walton
Street has raised more than $15 billion of capital commitments from
global institutional investors and has acquired, financed, managed
and sold more than $55 billion of real estate. Through the cross
platform synergies of its investment groups, Walton Street seeks to
make real estate equity and debt investments with attractive risk
adjusted returns. Affiliates of Walton Street have actively
participated in the real estate industry in México since 1998 and
raised over $2.7 billion USD of capital commitments from
institutional investors. For more information, please visit
www.waltonst.com.
Forward-Looking Statements Statements included herein
contain forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, which reflect our
current views with respect to, among other things, future events,
operations and financial performance. You can identify these
forward-looking statements by the use of forward-looking words such
as “outlook,” “believes,” “expects,” “potential,” “continues,”
“may,” “will,” “should,” “seeks,” “predicts,” “intends,” “plans,”
“estimates,” “anticipates,” “foresees” or negative versions of
those words, other comparable words or other statements that do not
relate to historical or factual matters. The forward-looking
statements are based on our beliefs, assumptions and expectations
of our future performance, taking into account all information
currently available to us. Such forward-looking statements are
subject to various risks and uncertainties and assumptions relating
to our operations, financial results, financial condition, business
prospects, growth strategy and liquidity. These statements are not
guarantees of future performance, condition or results and involve
a number of risks and uncertainties, including the ability of Ares
to consummate the Walton Street Mexico acquisition and to
effectively integrate the acquired business into our operations, to
achieve the expected benefits therefrom and growth of the business.
Actual results may vary materially from those indicated in these
forward-looking statements as a result of a number of factors,
including those described from time to time in our filings with the
SEC. Ares does not undertake any obligation to publicly update or
review any forward-looking statement, whether as a result of new
information, future developments or otherwise, except as required
by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20240926675172/en/
Ares Management Contacts Media: Brittany Cash, +1
212-301-0347 media@aresmgmt.com
Investors: Greg Mason, +1 314-282-2533
gmason@aresmgmt.com
Walton Street Capital, L.L.C. Contacts Kate Kappas, +1
312-915-2814 kappask@waltonst.com
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