The newly acquired portfolio, with a total of more than 65,000 meters of leasable space, adds to the fund’s already substantial residential portfolio in Germany, bringing to 3,900 the number of residential holdings under management. In addition to properties in major metropolitan areas in northern Germany, the portfolio includes a number of properties in prominent German resort destinations along the North Sea and Baltic Sea Coasts.
The transaction is the fourth acquisition for Ares’ residential real estate portfolio in Germany. The 3,900 units total more than 230,000 square meters across west and northwest Germany.
Los Angeles, Calif.-based Ares intends to continue its working relationship with Frankfurt and Berlin-based real estate asset manager Forte. With six offices across Germany, Forte manages a 7,000-unit residential portfolio.
Ares previously partnered with Forte to acquire and manage its earlier German residential investments. The partnership with Forte will allow Ares to add value, reduce vacancy and reposition the expanded portfolio.
“This is a strong addition to our investment strategy in the German residential market,” said Ares Real Estate Group partner John Ruane, “We continue to see both strong letting and investment fundamentals in the German market in city centers, surrounding metropolitan areas, as well as holiday regions.”