Ares Management is set to expand its real estate platform through the acquisition of GCP International for $3.7 billion. This move will nearly double Ares' real estate assets under management and reflects the firm's aggressive expansion strategy in the sector.
The deal includes $1.8 billion in cash and the rest in stock, demonstrating Ares' commitment to strengthening its position in the global real estate market. GCP International currently oversees $44 billion in real assets and private equity. After the acquisition, Ares Real Estate will manage around $96 billion in assets across North America, Europe, Asia, and Latin America.
This transaction is expected to increase Ares' total global assets under management to approximately $492 billion. The acquisition aims to create a strong player in global real assets investing and will enhance Ares' capabilities and market presence. The leadership teams from both firms will integrate into Ares, fostering a collaborative environment.
Ares and GCP are optimistic about the long-term demand in the industrial real estate sector driven by e-commerce and the need for data centers. This acquisition follows Ares' plans to acquire Walton Street Capital Mexico, further expanding its real estate platform. Ares has strategically positioned itself to benefit from the multi-trillion-dollar opportunity presented by the global digital infrastructure build-out.
The anticipated closing of the GCP International acquisition in the first half of 2025 will solidify Ares' standing as a global market leader in real estate. The integration of GCP's assets and expertise will enhance Ares' operational capabilities and provide a broader platform for investment opportunities. Ares' proactive approach to expansion positions it favorably to navigate the evolving real estate landscape.