Ares Management Corporation is set to acquire GLP Capital Partners International, Inc. for $3.7 billion, aiming to strengthen its real estate platform and capitalize on the growing demand for industrial and data center assets.

Overview of the Deal

On October 8, 2024, Ares Management Corporation, a prominent global investment manager, announced its intention to acquire GLP Capital Partners International, Inc., excluding its operations in Greater China, for an implied equity value of $3.7 billion and a total transaction size of $5.2 billion. This acquisition, expected to close between January 1 and June 30, 2025 pending regulatory approvals, aims to reinforce Ares' real estate platform, nearly doubling its Assets Under Management (AUM) to approximately $96 billion across multiple regions including North America, Europe, Asia, and Latin America.

GLP Capital Partners International boasts a substantial portfolio comprised of 23 funds and 320 million square feet of industrial properties, amounting to $44 billion in AUM as of June 30, 2024. This acquisition allows Ares to capitalize on GLP’s strong position in sectors aligned with the new economy, such as hyperscale data center developments that are rapidly expanding due to increasing data demands. The purchase is being financed through bridge funding from Morgan Stanley and Citigroup.

Industry Overview in the Target’s Specific Country

The industrial real estate sector is a pivotal part of the global economy, valued at approximately $2 trillion. It continues to thrive, particularly in regions like North America and Europe, where demand for industrial spa