Ares Management and Lone Star Partner on £755 million Preferred Equity Investment to Wembley’s Quintain
Ares Management (NYSE: ARES) has announced a significant £755 million preferred equity investment in Quintain, the company behind London's iconic Wembley Park estate. This investment is led by Ares' Alternative Credit strategy, with Lone Star Funds contributing £337 million. Wembley Park, an 85-acre mixed-use development, has already received over £2.8 billion in investment, transforming it into a premier destination with retail, office space, parks, and around 5,000 homes.
The partnership aims to further develop Wembley Park and strengthen Quintain's position in London's undersupplied residential rental market. As part of the deal, Stefano Questa from Ares will join Quintain's Board of Directors. This collaboration marks a significant step in Quintain's evolution under Lone Star's ownership and demonstrates Ares' capability to provide creative capital solutions for high-quality assets.
Ares Management (NYSE: ARES) ha annunciato un'importante investimento in equity preferenziale di £755 milioni in Quintain, la società dietro l'iconico Wembley Park di Londra. Questo investimento è guidato dalla strategia di credito alternativo di Ares, con Lone Star Funds che contribuisce con £337 milioni. Wembley Park, uno sviluppo a uso misto di 85 acri, ha già ricevuto oltre £2,8 miliardi in investimenti, trasformandolo in una destinazione di prestigio con spazi commerciali, uffici, parchi e circa 5.000 abitazioni.
La partnership mira a sviluppare ulteriormente Wembley Park e a rafforzare la posizione di Quintain nel mercato locativo residenziale di Londra, che attualmente è sottodimensionato. Come parte dell'accordo, Stefano Questa di Ares entrerà a far parte del Consiglio di Amministrazione di Quintain. Questa collaborazione rappresenta un passo significativo nell'evoluzione di Quintain sotto la proprietà di Lone Star e dimostra la capacità di Ares di fornire soluzioni di capitale creative per asset di alta qualità.
Ares Management (NYSE: ARES) ha anunciado una significativa inversión de equity preferente de £755 millones en Quintain, la empresa detrás del icónico Wembley Park de Londres. Esta inversión está liderada por la estrategia de Crédito Alternativo de Ares, con Lone Star Funds contribuyendo con £337 millones. Wembley Park, un desarrollo de uso mixto de 85 acres, ya ha recibido más de £2,8 mil millones en inversiones, transformándolo en un destino destacado con espacios comerciales, oficinas, parques y alrededor de 5,000 viviendas.
La colaboración tiene como objetivo desarrollar aún más Wembley Park y fortalecer la posición de Quintain en el mercado de alquiler residencial de Londres, que actualmente está desabastecido. Como parte del acuerdo, Stefano Questa de Ares se unirá a la Junta Directiva de Quintain. Esta colaboración marca un paso significativo en la evolución de Quintain bajo la propiedad de Lone Star y demuestra la capacidad de Ares para proporcionar soluciones de capital creativas para activos de alta calidad.
Ares Management (NYSE: ARES)는 런던의 상징적인 웸블리 파크 부동산을 운영하는 킨타인에 £755백만의 유의주식 투자를 발표했습니다. 이 투자는 Ares의 대체 신용 전략에 의해 주도되며, 론 스타 펀드가 £337백만을 기여합니다. 웸블리 파크는 85에이커 규모의 복합 용도 개발로, 현재까지 £28억이 넘는 투자를 유치하여 소매, 사무실 공간, 공원 및 약 5,000채의 주거지로 변모했습니다.
이 파트너십은 웸블리 파크를 더 발전시키고 킨타인의 런던의 주거 임대 시장에서의 입지를 강화하는 것을 목표로 합니다. 계약의 일환으로, Ares의 스테파노 쿠에스타가 킨타인의 이사회에 합류할 예정입니다. 이 협력은 론 스타 소유 하에서 킨타인의 발전에 중요한 진전을 나타내며, 고품질 자산을 위한 창의적인 자본 솔루션을 제공할 수 있는 Ares의 능력을 보여줍니다.
Ares Management (NYSE: ARES) a annoncé un investissement significatif de 755 millions de livres sterling en actions privilégiées dans Quintain, l'entreprise derrière l'emblématique Wembley Park de Londres. Cet investissement est dirigé par la stratégie de crédit alternatif d'Ares, avec Lone Star Funds contribuant à hauteur de 337 millions de livres sterling. Wembley Park, un développement mixte de 85 acres, a déjà reçu plus de 2,8 milliards de livres sterling en investissements, le transformant en une destination de premier plan avec des espaces de vente au détail, des bureaux, des parcs et environ 5 000 logements.
Le partenariat vise à développer davantage Wembley Park et à renforcer la position de Quintain sur le marché locatif résidentiel sous-évalué de Londres. Dans le cadre de l'accord, Stefano Questa d'Ares rejoindra le conseil d'administration de Quintain. Cette collaboration représente une étape importante dans l'évolution de Quintain sous la propriété de Lone Star et démontre la capacité d'Ares à fournir des solutions de capital créatives pour des actifs de haute qualité.
Ares Management (NYSE: ARES) hat eine bedeutende Investition in Höhe von £755 Millionen in Vorzugsaktien in Quintain angekündigt, das Unternehmen hinter dem ikonischen Wembley Park in London. Diese Investition erfolgt im Rahmen der Alternativen Kreditstrategie von Ares, wobei Lone Star Funds £337 Millionen beiträgt. Wembley Park, ein 85 Hektar großes Mischentwicklungsprojekt, hat bereits über £2,8 Milliarden an Investitionen erhalten und sich zu einem erstklassigen Ziel mit Einzelhandelsflächen, Bürogebäuden, Parks und rund 5.000 Wohnungen entwickelt.
Die Partnerschaft zielt darauf ab, Wembley Park weiterzuentwickeln und die Position von Quintain auf dem unterversorgten Mietwohnungsmarkt in London zu stärken. Im Rahmen des Deals wird Stefano Questa von Ares in den Vorstand von Quintain eintreten. Diese Zusammenarbeit markiert einen bedeutenden Schritt in der Entwicklung von Quintain unter der Eigentümerschaft von Lone Star und zeigt die Fähigkeit von Ares, kreative Kapitallösungen für hochwertige Vermögenswerte bereitzustellen.
- £755 million preferred equity investment in Quintain, strengthening its financial position
- Partnership with Lone Star Funds, contributing an additional £337 million
- Expansion of Wembley Park, a premier mixed-use development with £2.8 billion invested to date
- Strategic move to capitalize on London's undersupplied residential rental market
- Ares Alternative Credit strategy manages approximately $36.5 billion in assets
- None.
Insights
The £755 million preferred equity investment in Quintain, led by Ares Management with Lone Star Funds contributing £337 million, marks a significant development in the UK real estate market. This substantial capital injection will likely accelerate the growth of Wembley Park, one of London's largest build-to-rent schemes.
From an investor's perspective, this deal highlights several key points:
- The continued attractiveness of the UK's residential rental market, particularly in London where housing supply remains constrained.
- The growing trend of institutional investors seeking exposure to large-scale, mixed-use urban developments.
- The potential for Ares Management (NYSE: ARES) to benefit from this high-profile investment, potentially boosting its Alternative Credit strategy's performance.
The structure of the deal - using preferred equity - is noteworthy. This approach allows Lone Star to maintain control while bringing in significant new capital, potentially indicating a balanced risk-reward profile for both parties. For Ares shareholders, this deal could represent a promising revenue stream, given the scale and prime location of the Wembley Park development.
However, investors should be mindful of potential risks, including the cyclical nature of the real estate market and any potential economic headwinds that could impact rental demand or property values in London. Overall, this deal underscores the continued institutional appetite for large-scale real estate investments in major global cities.
The Quintain investment represents a significant vote of confidence in London's build-to-rent sector and the long-term prospects of large-scale, mixed-use developments. Wembley Park, with its 85-acre footprint and £2.8 billion investment to date, exemplifies the trend towards creating 'micro-cities' within major urban centers.
Key aspects for real estate investors to consider include:
- The scale of the development: With around 5,000 homes already delivered, Wembley Park is addressing London's chronic housing shortage.
- Mixed-use approach: The combination of residential, retail, office and public spaces creates a diverse income stream and helps to build a sustainable community.
- Location: Proximity to central London and excellent transport links enhance the long-term value proposition.
The involvement of Ares Management, a major player in alternative investments, could accelerate the development timeline and potentially introduce innovative financing structures to the UK market. This could set new benchmarks for large-scale urban regeneration projects.
However, the success of such a massive project hinges on continued demand for rental properties in London and the ability to maintain high occupancy rates. The development's performance will be closely watched as an indicator of the health of the UK's build-to-rent sector and could influence investment strategies across the industry.
This investment in Quintain's Wembley Park development offers valuable insights into current market trends:
- Build-to-rent momentum: The substantial investment underscores the growing importance of the build-to-rent sector in addressing housing needs, particularly in major cities facing supply constraints.
- Institutional interest: Large-scale investments by firms like Ares and Lone Star indicate continued institutional appetite for real estate, especially in established markets like London.
- Mixed-use developments: The success of Wembley Park's diverse offering (residential, retail, office, public spaces) reinforces the market's preference for integrated urban communities.
- Alternative financing: The use of preferred equity highlights the evolving landscape of real estate financing, offering more flexible capital structures.
From a market perspective, this deal may signal increased competition for prime development opportunities in major cities. It could also lead to a rise in similar large-scale, mixed-use projects as developers and investors seek to replicate Wembley Park's success.
For the broader real estate market, this investment could potentially drive up valuations for comparable assets and development sites. It may also encourage more international investment into the UK property market, despite ongoing economic uncertainties.
Investors should monitor how this influx of capital impacts rental rates, occupancy levels and property values in the surrounding area, as it could provide valuable indicators for the health of the UK's residential property market as a whole.
With over
“Lone Star and Quintain have built Wembley Park into one of London’s leading neighbourhoods, delivering a high-quality and sustainable real estate for thousands of residents and millions of visitors. We are excited to partner with their outstanding teams, and to provide significant new capital for Quintain to continue its journey and cement its position as a leader in London’s critically undersupplied residential rental market,” said Stefano Questa, Partner and European Co-Head of Ares Alternative Credit, who will be joining the Quintain Board of Directors as part of the transaction.
“Our team is an established leader in providing bespoke and creative capital solutions to asset-focused investment opportunities,” said Joel Holsinger, Partner and Co-Head of Ares Alternative Credit. “We believe our scale, coupled with our flexible mandate, makes Ares an ideal partner for private equity sponsors, as they seek to grow and optimize the balance sheets of their highest quality assets. We are delighted to be partnering with Lone Star in this landmark transaction for the
“This is a significant next step in the evolution of Quintain’s development of Wembley Park under Lone Star’s ownership. Wembley Park is one of the largest build-to-rent schemes in the
“Quintain is delighted to have Ares’ backing as a new partner, whilst maintaining our longstanding partnership with Lone Star, to continue to develop the world-class Wembley Park estate which already is home to the largest multifamily/build-to-rent community in the UK,” said James Saunders, CEO of Quintain.
The Ares Alternative Credit strategy is one of the largest investors in asset-based credit managing approximately
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2024, Ares Management Corporation's global platform had approximately
About Lone Star
Lone Star is a leading private equity firm advising funds that invest globally in corporate equity, credit, real estate and other financial assets. Since the establishment of its first fund in 1995, Lone Star has organized 24 private equity funds with aggregate capital commitments totaling approximately
About Quintain
Quintain is the award-winning development and asset management company behind Wembley Park, one of
Quintain celebrated its 30th anniversary in 2022, with 20 years since acquiring its interest in Wembley Park. To date, the 85-acre development has seen over
Quintain’s award-winning residential management business, Quintain Living, focuses on the management of Quintain's institutional quality, Build-to-Rent (BTR) property management platform and pipeline. In 2022 Quintain Living was named Estate Gazette’s BTR Specialist and RESI’s Property Manager of the Year.
More information can be found at:
www.quintain.co.uk
www.quintainliving.com
www.wembleypark.com
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Media:
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Source: Ares Management Corporation
FAQ
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