Ares secures €1.5 billion commitment for European logistics partnership

Ares Management ($ARES) established a European logistics investment partnership with Norges Bank Investment Management, which made an equity commitment of €1.5 billion. The arrangement is the first collaboration between the two organizations. Ares intends to target modern logistics properties across Europe serving supply chains, distribution and e-commerce, using its Marq Logistics operating platform to support investment selection and property management.

The partnership creates a sizeable pool of capital for future acquisitions and development opportunities, but the commitment is not equivalent to assets already purchased or revenue earned by Ares. The announcement did not quantify management fees, investment returns or an immediate earnings contribution. Its significance is the additional institutional capital and potential expansion of the firm’s real-estate activity. Deployment, asset performance and the partnership’s economics will determine the eventual financial effect rather than the headline commitment alone.

Sources:

• Ares — Business Wire issuer release
• Issuer release — timestamped reproduction
• Ares — Business Wire release via Yahoo Finance