Ares Management Corporation (NYSE: ARES) ("Ares") announced today that funds managed by its Alternative Credit strategy have led a £755 million preferred equity commitment in Quintain, the award-winning development and asset management company which owns and manages the iconic 85-acre Wembley Park estate in London. Quintain is owned by funds managed by Lone Star Funds ("Lone Star"), which will be contributing £337 million to the preferred equity instrument.
With over £2.8 billion of investment to date, Quintain has transformed the Wembley Park estate into a premier mixed-use development, with leading retail, modern office space, acres of parks and pedestrianized public realm, and around 5,000 homes.
"Lone Star and Quintain have built Wembley Park into one of London's leading neighbourhoods, delivering a high-quality and sustainable real estate for thousands of residents and millions of visitors. We are excited to partner with their outstanding teams, and to provide significant new capital for Quintain to continue its journey and cement its position as a leader in London's critically undersupplied residential rental market," said Stefano Questa, Partner and European Co-Head of Ares Alternative Credit, who will be joining the Quintain Board of Directors as part of the transaction.
"Our team is an established leader in providing bespoke and creative capital solutions to asset-focused investment opportunities," said Joel Holsinger, Partner and Co-Head of Ares Alternative Credit. "We believe our scale, coupled with our flexible mandate, makes Ares an ideal partner for private equity sponsors, as they seek to grow and optimize the balance sheets of their highest quality assets. We are delighted to be partnering with Lone Star in this landmark transaction for the UK market."
"This is a significant next step in the evolution of Quintain's development of Wembley Park under Lone Star's ownership. Wembley Park is one of the largest build-to-rent schemes in the UK and a great example of ambitious place-making. In Ares, we have found a like-minded partner, and together we look forward to taking this iconic asset to its next exciting phase," said James Riddell, Co-Head of European Real Estate at Lone Star.
"Quintain is delighted to have Ares' backing as a new partner, whilst maintaining our longstanding partnership with Lone Star, to continue to develop the world-class Wembley Park estate which already is home to the largest multifamily/build-to-rent community in the UK," said James Saunders, CEO of Quintain.
The Ares Alternative Credit strategy is one of the largest investors in asset-based credit managing approximately $36.5 billion in assets under management as of March 31, 2024. The team invests across the capital structure and seeks opportunities in specialty finance, lender finance, loan portfolios, equipment leasing, structured products, net lease, cash flow streams (royalties, licensing, management fees) and other asset-focused investments. Aligning Ares' investment activities with its societal impact, Ares and Ares Alternative Credit portfolio managers have committed to donate a portion of the performance fees earned from Ares Alternative Credit flagship funds to support global health and education charities.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2024, Ares Management Corporation's global platform had approximately $428 billion of assets under management, with approximately 2,900 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.
About Lone Star
Lone Star is a leading private equity firm advising funds that invest globally in corporate equity, credit, real estate and other financial assets. Since the establishment of its first fund in 1995, Lone Star has organized 24 private equity funds with aggregate capital commitments totaling approximately $92 billion. The firm organizes its funds in three series: the Opportunity Fund series; the Commercial Real Estate Fund series; and the U.S. Residential Mortgage Fund series. Lone Star invests on behalf of its limited partners, which include institutional investors such as pension funds and sovereign wealth funds, as well as foundations and endowments that support medical research, higher education, and other philanthropic causes. For more information regarding Lone Star Funds, go to www.lonestarfunds.com.
About Quintain
Quintain is the award-winning development and asset management company behind Wembley Park, one of London's most exciting new neighbourhoods.
Quintain celebrated its 30th anniversary in 2022, with 20 years since acquiring its interest in Wembley Park. To date, the 85-acre development has seen over £2.8bn invested and welcomes on average 16 million visitors a year.
Quintain's award-winning residential management business, Quintain Living, focuses on the management of Quintain's institutional quality, Build-to-Rent (BTR) property management platform and pipeline. In 2022 Quintain Living was named Estate Gazette's BTR Specialist and RESI's Property Manager of the Year.
More information can be found at:
www.quintain.co.uk
www.quintainliving.com
www.wembleypark.com
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