Ares Management Corporation (NYSE: ARES) announced today that one of its subsidiaries has finalized a definitive agreement to acquire 100% of Walton Street Capital Mexico S. de R.L. de C.V. and certain affiliates (“Walton Street Mexico”). This leading real estate asset management platform focuses primarily on the industrial sector and has US$2.1 billion in assets under management as of June 30, 2024, acquired from Walton Street Capital, L.L.C. (“Walton Street”).
Federico Martin del Campo, Managing Partner and CEO, leads the Walton Street Mexico team, which comprises over 15 investment professionals with more than 20 years of experience in industrial and major real estate sectors in Mexico. Since 2010, Walton Street Mexico has invested in key markets, acquiring and developing over 51 million square feet of industrial real estate across more than 250 properties and attracting tenants from the country’s largest industrial sectors.
Ares Real Estate has strategically grown its platform, focusing on key geographies and sectors poised for long-term structural benefits. The firm has maintained a strong commitment to the industrial real estate sector, establishing a portfolio valued at $28.1 billion and spanning over 230 million square feet in the U.S. and Europe as of June 30, 2024. Following the acquisition, Ares will leverage the Walton Street Mexico team’s extensive local experience and networks to expand its global industrial footprint.
Michael Arougheti, CEO and President of Ares, expressed excitement about the acquisition, stating, “We believe that the Walton Street Mexico team will bring great insights to Ares as we continue to grow our leading global industrial real estate platform. We are observing a significant shift in global supply chain dynamics, with Mexico emerging as an attractive location for skilled manufacturing, which is likely to drive demand for warehouse space in the country.”
David Roth, Co-Head of Ares U.S. Real Estate, welcomed the Walton Street Mexico team, noting that adding capability in Mexico is a crucial step to enhancing Ares’ global offerings. He emphasized the importance of entering the Mexican market at a time of expected growth in the industrial real estate sector in North America.
Jeff Quicksilver, Co-Founder and Managing Partner of Walton Street Capital, remarked on the sale’s strategic timing, allowing Walton Street to continue focusing on growing its U.S. real estate equity and debt investment platforms.
Gino De Pasquale, CEO and Founder of Walton Street Mexico, highlighted the cultural and skill synergies between the teams, expressing eagerness to collaborate with Ares’ global real estate team on industrial investment opportunities.
The transaction is anticipated to be immediately accretive to Ares’ after-tax realized income per share of Class A and non-voting common stock, and is expected to close in the fourth quarter of 2024, pending customary closing conditions and regulatory approvals.
Legal counsel for Ares was provided by Latham & Watkins LLP, while Kirkland & Ellis LLP and Mayer Brown LLP served as legal counsel for Walton Street. Berkshire Global Advisors L.P. acted as financial advisor to Walton Street.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager providing clients with complementary primary and secondary investment solutions across credit, real estate, private equity, and infrastructure asset classes. Ares aims to deliver flexible capital to support businesses and create value for stakeholders and communities. As of June 30, 2024, Ares Management Corporation’s global platform managed over $447 billion in assets, supported by more than 2,950 employees across North America, Europe, Asia Pacific, and the Middle East.
