Ares Management Corporation (NYSE: ARES) announced it will acquire the GCP International, the global business of GLP Capital Partners Limited, for approximately $1.8 billion in cash and approximately $1.9 billion in Ares Class A Common Shares.
According to the company, the acquisition – which excludes GCP International’s operations in Greater China – is designed to establish Ares Real Estate as one of the largest global vertically integrated platforms and nearly doubles its assets under management (AUM) to approximately $96 billion across North America, Europe, Asia and Latin America.
GCP International is a global alternative asset management firm with $44 billion of AUM – the company manages 23 funds encompassing more than 320 million square feet of industrial properties.
“We have long admired the global real estate experience of GCP and its capabilities in facilitating the economy of the future, which includes investing in and managing industrial, data center and self-storage assets,” said Michael Arougheti, CEO and president of Ares. “As a combined business, we believe that Ares’ and GCP International’s experienced management teams, highly collaborative cultures and investment track records will create a powerhouse in global real assets investing.”
“We are thrilled to join Ares, a pioneer and market leader in alternative investing,” said Michael Steele, president of GCP International. “Our commitment to long-term business building and our ability to identify and focus on new economy sectors with large addressable markets and strong secular tailwinds have enabled us to distinguish ourselves in the market and grow rapidly. In Ares, we have found a partner that shares our philosophy and entrepreneurial culture. We look forward to integrating with the Ares team, and continuing to build upon our successful, long-term track records and scale our combined platform for the benefit of all stakeholders.”
The acquisition is the second for Ares within two weeks, following its purchase of Walton Street Capital Mexico S. de R.L. de C.V., a real estate asset management platform focused primarily on the Mexican industrial sector.
Photo courtesy Ares Management Corporation
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