As part of the transaction, Ares will acquire the minority stake in AREA held by National Australia Bank. Terms of the deal were not disclosed.
Neither Mr. Mendel nor AREA spokesman Eric Waters would provide additional information, including the size of NAB's stake or whether the bank had any limited partnership interests in AREA's real estate funds.
When the deal closes, Ares' real estate group will have about $8 billion in committed capital in debt and equity investments, including $6 billion mostly in equity from AREA Property Partners, according to a joint news release.
William Mack, AREA founder will be stepping down as chairman of AREA “to focus on actively managing his family's real estate initiatives, investments and philanthropic pursuits,” according to the news release.
Richard Mack, AREA's North America CEO, will become a senior adviser to the Ares real estate group.
Lee Neibart, AREA global CEO, will become a senior partner and co-head of Ares real estate, along with John Bartling, a senior partner of Ares real estate.
Ares real estate now makes mostly debt investments.
AREA Property Partners started out as the real estate arm of Apollo Global Management but spun out in 2000. Ares is a spinout of Apollo's capital markets group.