Ares Management has more than 1,000 million euros invested in Spain since its arrival, a figure that is expected to continue increasing.
Since its landing in Spain in 2019, Ares has invested more than 600 million euros in build to rent projects and in the purchase and subsequent renovation of buildings in the center of Madrid. To this, it adds the 420 million euros the company has prepared to carry out the lots awarded in the "Plan Vive".
Currently, their portfolio consists of 7,000 homes for rent, including those that will be promoted in the regional plan.
Regarding the possible sale of a part of this portfolio, Avalon Properties, Ares real estate manager, assures that “our shareholders refuse to sell the portfolio because there are no safe investments like these, with ESG and affordable rent ”. In case of wanting to divest, they assure they have no other alternative or asset where to deposit the capital.
From the company they point to a data that increases the attractiveness of their residential investments: the average effort of their tenants in the payment of the rent with respect to their net salary is situated in 28%; while other competing companies are averaging 41%. "The money they save on rent living in this new construction is spent on local businesses and on boosting the economy that surrounds it," they explained at the presentation of their second build to rent promotion, promoted for them by Aedas Homes.
Future plans
Ares intends to invest "as much as possible" in the Spanish real estate sector.
The company recognizes that the product is becoming scarce and is at much higher prices than two years ago. For this reason, they have begun to apply for public competitions such as the Plan Vive Madrid. The company, together with Grupo San José and Aedas Homes, was awarded two of the three lots of the first part of the project.
They also recognize that they will apply to all public affordable rental housing plans that public administrations put out to tender.
The focus of investment is exclusively in Madrid because it is, on their opinion, the only region that has a stable legal and political framework in which investment is encouraged.
Among the shareholders of Ares Management, listed on the New York Stock Exchange, are managers such as Wellington Management, Vanguard or Blackrock; the Japanese holding company Sumitomo Mitsui Financial Group; or other hedge founds and pension funds. Sources from the manager assure that these companies have very long-term investment prospects, a mandate that Ares herself executes.
