Ares value-add fund more than halfway to €1b target
Ares has raised €573 million for its European Property Enhancement Partners III (EPEP III) fund, meaning that it is more than halfway to reaching its €1 billion fundraising target.
EPEP III is a value-add strategy managed by Ares Management UK that focuses on diversified pan-European, income-generating assets. The closed-end fund is structured as a diversified European commingled vehicle.
Ares declined to comment on its fundraising activities, but a New Mexico State Investment Council investment document shows that EPEP III’s strategy is to acquire fundamentally good-quality assets at attractive prices in major European markets. It then plans to increase operating cashflow and capital values through enhanced active asset management and selective capital expenditure. Upon exit, EPEP III will seek to capitalise on demand for stabilised assets via sale to institutional buyers.
EPEP III will seek to create a portfolio of 10 to 15 real estate investments, inclu