A subsidiary of Ares Management has signed a definitive agreement to acquire 100% of Walton Street Capital Mexico and certain of its affiliates from private real estate investment firm Walton Street Capital.
The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions, including regulatory approvals. The terms of the transaction were not disclosed, an Ares spokesperson confirmed.
Walton Street Mexico is a real estate asset management platform focused primarily on the industrial sector in Mexico with $2.1 billion in assets under management as of June 30, said a Sept. 26 news release.
A source noted that Mexico represents a new market for Ares.
Since 2010, affiliates of Walton Street Mexico have acquired and developed more than 51 million square feet of industrial real estate in more than 250 separate properties.
In explaining the rationale for moving into Mexico, Michael Arougheti, chief executive officer and president of Ares, added in the release that the firm is seeing "a meaningful shift in supply chain dynamics globally with Mexico emerging as an attractive location for skilled manufacturing, and we believe that these trends will continue to increase demand for warehouse space in the country.”
Ares’ own global real estate team currently oversees $52 billion in assets under management, and the firm has more than $447 billion of AUM in total.
