Ares raises €5.0b for U.S. and European value-add real estate

Ares Management Corporation has raised a total of $5.4 bn (€5.0 bn) across two funds to pursue value-add real estate investments in the U.S. and Europe.

Julie Solomon

Ares US Real Estate Fund XI (US XI) closed at its hard cap of $3.1 bn (€2.9 bn), bringing its total U.S. value-add strategy capital to $3.5 bn (€3.2 bn).

Ares European Property Enhancement Partners IV (EPEP IV) secured approximately $1.9 bn (€1.7 bn) for its European strategy.

Ares Real Estate plans to use this capital to invest thematically in "New Economy" sectors like logistics, multifamily, and self-storage, leveraging its global insights and regional teams to identify attractive opportunities. Both funds have already deployed or identified about $1.1 bn in initial investments.

Julie Solomon, head of Ares Real Estate, commented: “As real estate markets move into the early stages of recovery, our confidence is fueled by the increase in long‑term structural demand across our high-conviction New Economy sectors. We believe this substantial capital reinforces our team’s ability to invest in the most compelling opportunities, particularly in supply-constrained sectors where durable cash flows and valuation resets are creating attractive entry points.”