Ares Management acquires Capital Automotive for $3.8bn from Brookfield

Funds managed by Ares Management‘s Alternative Credit strategy and Real Estate Group have purchased Capital Automotive from a private real estate fund of Brookfield for $3.8 billion.

Capital Automotive, which is based in McLean, Virginia, is a real estate company that offers automotive dealers in the US and Canada customized, sale-leaseback capital to help them in buying new locations and for upgrading facilities.

The real estate company is said to own a diversified portfolio of more than 250 operationally essential real estate assets which are organized as long-term triple net leases.

Jay Ferriero — President and CEO of Capital Automotive said: “I’m excited to be partnering with the team at Ares and believe that together we will be well positioned to take advantage of the expanding opportunity set in the net lease market.

“Beyond the competitive edge of the Ares platform and the experience of the team, the strength of this partnership is reinforced through our shared commitment to accelerating positive social impact.”

Ares Management’s funds have so far invested in more than 1,200 assets totaling nearly $7.2 billion of gross asset value in the US as well as Europe over the past 15 months.

Joel Holsinger — Partner and Co-Head of Ares Management’s Alternative Credit strategy and Real Estate Group said: “Our net lease capabilities sit at the nexus of our leading credit and real estate teams, providing us with a 360-degree view through which we can offer highly flexible net lease solutions.

“We are excited by growing market demand from sponsors and companies seeking a creative partner to help them unlock the value of their real estate assets. We are committed to being a partner of choice to them.”