Barings Closes $93M Acquisition of Acre Capital Holdings

The ACRE Capital platform will be rebranded as Barings Multifamily Capital.

By Adriana Pop

CharlotteBarings Real Estate Advisers, one of the world’s largest real estate-focused investment managers, has completed its acquisition of ACRE Capital Holdings LLC, the parent company of ACRE Capital LLC, the agency lending subsidiary of Ares Commercial Real Estate Corp.

Scott Brown, Global Head of Real Estate at Barings
Scott Brown, Global Head of Real Estate at Barings

The ACRE Capital platform will be renamed Barings Multifamily Capital and will be a subsidiary of Barings Real Estate Advisers, formerly known as Cornerstone Real Estate Advisers. The transaction, valued at $93 million, was announced on June 29.

“The acquisition of Barings Multifamily Capital is a demonstration of Barings’ ability to source not only direct real estate investments but also attractive real estate operating company investments for our clients. The array of capital solutions that we can provide within the multifamily and health care sectors positions us very well to allocate capital up and down the capital stack and grow the coverage and expertise in an important property sector for Barings Real Estate Advisers,” stated Scott Brown, global head of real estate at Barings.

Barings Multifamily Capital originates and services multifamily, senior housing and health care facility loans by utilizing GSE and other government agency programs. The platform, which complements Barings Real Estate Advisers’ other origination and investment organizations, is one of only 19 lenders that hold licenses with Fannie Mae, Freddie Mac and the Federal Housing Administration.

Barings Multifamily Capital will be headed by Jamie Henderson, head of structured real estate investments at Barings Real Estate Advisers.

“Barings has a bullish stance regarding the real estate fundamentals of both the multifamily and health care sectors due to a variety of structural and demographic factors. The addition of Barings Multifamily Capital broadens our reach into these important sectors,” Henderson observed.

Image courtesy of Barings Real Estate Advisers