Self-Storage Investor GCP International to be Acquired by Ares Management Corp. for $3.7 Billion

October 11, 2024

2 Min Read
Self-Storage Investor GCP International has entered into a final agreement to be acquired by Ares Management Corp. for $3.7 billion.

GCP International, which has investments in digital infrastructure, logistics and self-storage in the Americas, Asia and Europe, is being sold by GLP Capital Partners Ltd., to Ares Management Corp., a real estate asset management company, for $3.7 billion. The deal includes approximately $1.8 billion in cash and $1.9 billion in Ares class-A common shares, according to a press release.

The acquisition includes GLP’s international business and certain affiliates but excludes its operations in China and existing capital commitments to certain managed funds. The transaction will follow a separation of GCP International from GLP’s remaining business, which will continue to be independent and headquartered in Singapore, with a focus on investing in Greater China, the release stated.

Ming Mei, cofounder and CEO of GCP and GLP, will continue to serve as CEO of GCP’s remaining business. He’ll also serve as a partner and senior adviser for Ares, the release stated.

Michael Steele, president of GCP International and the leadership teams responsible for managing and operating company funds in Brazil, Europe, Japan, the United States and Vietnam, will join Ares as part of the transaction.

“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,” Mei said. “We’re 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.”

Related:3 Things You Need to Get Started in Self-Storage Investing and How to Do It With Little or No Money

“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,” said 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.”

New York-headquartered Ares is a global alternative-investment manager across the credit, real estate, private-equity and infrastructure asset classes. As of June 30, the company had more than $447 billion of assets under management, with more than 2,950 employees operating across Asia Pacific, Europe, the Middle East and North America.

GCP manages 23 institutional funds, with more than 320 million square feet of industrial space worldwide. The firm has been expanding into global data-center markets with several hyperscale development projects, representing more than 1 GW of information-technology capacity, in London; Tokyo; Osaka, Japan; and Sao Paulo.

Related:Win Some, Lose Some! A Millennial Self-Storage Owner in Madrid Shares What Went Wrong With His Second Investment

GLP is a global alternative-asset manager with $115 billion in assets in its portfolio.

Sources:
GLP Capital Partners, Ares Management Corporation to Acquire GCP International
IPE Real Assets, Ares to Acquire Global Arm of GLP Capital Partners for $3.7bn

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