- Ares Management is set to acquire GLP Capital Partners (GCP), a global alternative asset firm, for up to $5.2B.
- This acquisition will position Ares as one of the top three largest investors in industrial real estate, alongside Blackstone and Prologis.
- The deal will bring Ares’ real estate assets under management (AUM) to approximately $96B, expanding its presence across the U.S., Europe, Japan, Brazil, and Vietnam.
- GCP’s portfolio includes over 320 MSF of industrial properties and extensive investments in data centers.
Ares Management, a Los Angeles-based alternative asset manager, has announced plans to acquire GLP Capital Partners (GCP) in a deal valued at up to $5.2B, as reported by GlobeSt.
The acquisition, excluding GCP’s operations in China, will significantly boost Ares’ standing in the industrial real estate sector, potentially positioning it as the third-largest player after Blackstone (BX) and Prologis (PLD).
Massive Industrial Footprint
GCP, which manages $44B in assets across the U.S., Europe, Japan, and other global markets, brings Ares’ total real estate AUM to approximately $96B.
GCP’s portfolio includes over 320 MSF of industrial properties, as well as investments in digital infrastructure and self-storage sectors. The firm’s strong presence in industrial real estate and data centers aligns with Ares’ strategic focus on sectors with long-term growth potential.
According to Ares CEO Michael Arougheti, the acquisition strengthens the firm’s position in industrial real estate, a $2T sector benefiting from robust e-commerce growth and increasing institutional and retail investor demand.
Ares also noted the growing demand for data centers, with capital expenditure in the sector expected to exceed $1T over the next three years due to AI, cloud migration, and data security demand.
Expanding Globally
The deal also enhances Ares’ global reach, particularly in Japan, where GCP has a strong industrial presence with almost $20B in AUM. This includes investments in large publicly listed Japan Real Estate Investment Trusts (JREITs).
GCP’s success in both established and emerging markets, such as Brazil and Vietnam, adds geographic diversification to Ares’ portfolio.
Long-Term Outlook
If the acquisition closes as expected, it will mark one of the largest M&A deals in the private investment space in recent years.
Ares’ expansion through takeovers has more than doubled its size since 2020, and this latest move signals its ambition to continue growing its footprint in high-demand sectors like industrial real estate and digital infrastructure.
With GCP’s leadership aligned through performance incentives, the acquisition promises to further strengthen Ares’ position in the global real estate market, setting the stage for future growth across multiple sectors.
