Ares Management Corporation (NYSE: ARES) announced today that a fund managed by its Real Estate Group has acquired a portfolio of 2,900 residential units across several German cities, including top metropolises such as Berlin, Leipzig, Dresden, Essen and Dortmund. The portfolio comprises large residential complexes as well as classic turn-of-the-century buildings, most of which are within close proximity of each location's city centre. The portfolio's total rentable area amounts to approximately 210,000 square meters.
"This acquisition is a continuation of our longstanding investment strategy in the German multifamily residential market," said Klaus Schmitz, Managing Director in the Real Estate Group of Ares. "Ares continues to observe positive demographic and economic forces in the major German cities. Over the past year, funds managed by Ares have transacted on a total of €1 billion of gross asset value across sectors in the German real estate market, and we look forward to continuing to grow our portfolio in this key geography."
Ares will continue to work with Forte, a Frankfurt-based real estate asset manager that Ares partnered with since 2013 to acquire and manage its existing German residential investments, in order to add value through refurbishment, repositioning and vacancy reduction across the portfolio.
"With appealing floor plans and central locations, the properties in this portfolio offer attractive housing in several of Germany's largest cities," said Roland Schmidt, Managing Director of Forte.