Ares Management Corporation has announced a significant move to acquire GCP International, a prominent global real assets fund manager, in a deal valued at US$3.7 billion (€3.37 billion). This strategic acquisition sees GCP International transitioning from Glp Capital Partners (GCP), the asset management division of leading global logistics real estate developer and operator, GLP.
GCP International boasts a diverse portfolio with substantial investments in key sectors like logistics, digital infrastructure, and self-storage across Asia, the Americas, and Europe. While the acquisition excludes GCP’s operations in Greater China, it will bring a considerable US$44 billion in assets under management (AUM) to Ares Real Estate, nearly doubling its existing AUM to approximately US$96 billion.
This acquisition underscores Ares’ ambition to solidify its position as a dominant force in the global real estate market. The New York-headquartered firm stated that this deal will “firmly establish Ares Real Estate as one of the largest global vertically integrated platforms,” marking a significant expansion of their global reach and capabilities.
GCP International’s impressive portfolio includes management of 23 institutional funds and a footprint of over 320 million square feet of industrial space. They have established vertically integrated platforms in key developed regions, including Japan, Europe, and the US, as well as rapidly growing emerging markets like Brazil and Vietnam. Notably, the firm has been aggressively expanding into the burgeoning global data center market, with several hyperscale development projects underway, representing over 1GW of IT capacity in strategic locations such as London, Tokyo, Osaka, and São Paulo.
The transaction is structured following a strategic separation of GCP International from the broader GLP Capital Partners business. GLP Capital Partners will remain an independent entity, headquartered in Singapore, and will sharpen its focus on investment opportunities within Greater China. Ming Mei, co-founder and CEO of both GCP and GLP, will continue to lead GLP and the remaining GLP Capital Partners business as CEO, alongside his leadership team in China and selected global executives. Demonstrating continued collaboration, Mei will also support GCP International’s and Ares’ future growth as an Ares partner and senior advisor.
Michael Steele, president of GCP International, along with GCP International’s leadership teams responsible for fund management and operations in Japan, Europe, the US, Brazil, and Vietnam, will transition to Ares as part of this acquisition.
The financial details of the deal involve approximately US$1.8 billion in cash and US$1.9 billion in Ares class-A common shares. Furthermore, the structure incorporates long-term performance incentives, strategically designed to align the interests of GCP International’s leadership with those of fund clients and Ares stockholders, ensuring a continued commitment to performance and growth.
“We have long admired the global real estate experience of GCP and its capabilities in facilitating the economy of the future, which includes investing in and managing industrial, data-center and self-storage assets,” commented Michael Arougheti, CEO and president of Ares. “As a combined business, we believe that Ares’ and GCP International’s experienced management teams, highly collaborative cultures and investment track records will create a powerhouse in global real assets investing.”
In a joint statement, Bill Benjamin and Julie Solomon, co-heads of Ares Real Estate, added: “We have great respect for the business that the GCP International leadership team has built, and we believe that there are attractive strategic synergies between our firms.” They further emphasized, “Combining our platforms will further enhance our strong position in the industry and bolster Ares as a global market leader in real estate with vertically integrated capabilities. We are excited for the opportunities that we can pursue together with our expanded product suite, like-minded cultures and our ability to invest in assets that facilitate the new economy.”
Ming Mei also shared his perspective, stating, “We have strong conviction that combining GCP International’s and Ares’ investment and operating capabilities, expansive networks and collaborative cultures will create one of the world’s leading real assets investment management businesses.” He highlighted the positive outlook for clients, saying, “We are excited for the new opportunities the transaction will create for our current clients, and we look forward to continuing to partner with teams across GCP International and Ares to drive success for the combined business.” Mei also noted the continued focus and potential for growth within Greater China for GLP Capital Partners’ remaining business.
Steele concluded, “We are thrilled to join Ares, a pioneer and market leader in alternative investing. Our commitment to long-term business building and our ability to identify and focus on new economy sectors with large addressable markets and strong secular tailwinds have enabled us to distinguish ourselves in the market and grow rapidly.” He further added, “In Ares, we have found a partner that shares our philosophy and entrepreneurial culture. We look forward to integrating with the Ares team, and continuing to build upon our successful, long-term track records and scale our combined platform for the benefit of all stakeholders.”
This acquisition marks a pivotal moment for both Ares Management and GLP Capital Partners, creating a global real estate powerhouse while allowing GLP Capital Partners to sharpen its focus on the dynamic Greater China market.
