Ares Management Corporation (NYSE: ARES), a leading global alternative investment manager, has announced a major financial commitment to Quintain, the acclaimed development and asset management firm responsible for the iconic Wembley Park estate in London. Through its Alternative Credit strategy, Ares has led a £755 million preferred equity investment round. This funding is primarily aimed at supporting the ongoing development and enhancement of Wembley Park, which occupies a significant 85-acre area and is known for its mix of residential, commercial, and leisure spaces.
Notably, Lone Star Funds, the private equity firm that owns Quintain, will contribute £337 million to the preferred equity instrument as part of this investment partnership with Ares. This collaboration not only strengthens the financial foundation of Wembley Park but also underscores the growing interest in urban development projects that offer both economic potential and community value.
In a separate yet related announcement, Ares Management has also priced an offering of $500 million in aggregate principal amount of its 6.375% senior notes due in 2028. The notes will be fully and unconditionally guaranteed by various entities including Ares Holdings L.P. and several Ares Finance companies, indicating strong institutional backing and confidence in Ares’ financial strategy. The closing of this offering is anticipated for November, allowing Ares to further leverage its capital for investments such as the one in Wembley Park.
This dual move, combining the significant investment in Wembley Park and the issuance of senior notes, highlights Ares Management’s strategy to enhance its portfolio with high-value projects while maintaining robust funding mechanisms. Both initiatives reflect a broader trend in the investment community towards supporting thriving urban developments that promise sustainable returns.
As Ares Management and Lone Star Funds navigate the complexities of real estate investment and economic recovery, their collaboration at Wembley Park is poised to set a benchmark for future urban projects in London and beyond.
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