Ares in €400m pan-European portfolio deal

Ares has agreed to acquire 30 properties from German property company and fund manager IVG – the second portfolio it has bought from IVG this year.

Los Angeles-based Ares Management has reached an agreement to acquire a 2,583,000-square-foot pan-European office portfolio from IVG Institutional Funds.

The portfolio of 30 properties located across six European countries, including the UK, France, the Netherlands, Belgium, Finland and Spain, has been valued at more than €400 million.

“We believe this portfolio provides several compelling asset management opportunities, including the ability to create significant value from leasing,” Bill Benjamin, partner in the Ares Real Estate Group, commented. “It also fits with our strategy to deliver upside growth through diversification across geographies and asset types for our investors.”

This transaction is the second pan-European portfolio that Ares has acquired from the German property company and fund manager this year. In February, the firm bought a €100 million European portfolio from IVG. The 480,000-square-foot office and retail portfolio consisted of eight properties located across five European countries: the UK, Germany, Sweden, Poland and the Netherlands.

“We continue to seek out the right market circumstances to identify and execute the disposal strategies for non-core assets on behalf of our investors,” commented Martin Tartsch, executive director at IVG.

Ares’ real estate group is split between real estate equity investing and real estate debt. The equity division manages around $7 billion of assets in the US and Europe.

IVG, which has assets under management of around €10.5 billion, focuses on individual or club mandates for institutional investors.