May 10 (Bloomberg) -- AREA Property Partners LP, the real estate investment firm William Mack co-founded with Apollo Global Management LLC’s Leon Black, agreed to be acquired by Ares Management LLC.
Mack, 73, will step down as AREA’s chairman to focus on his family’s property investments and charitable pursuits, the companies said today in a statement. His son Richard, currently New York-based AREA’s chief executive officer for North America, will become a senior adviser to Ares’s real estate group. The deal’s terms weren’t disclosed.
“The entire Ares Management platform will greatly benefit from AREA’s geographic reach, market insights, industry relationships and seasoned investment professionals,” Tony Ressler, senior partner and chairman of Los Angeles-based Ares’s executive committee, said in the statement.
AREA, formerly named Apollo Real Estate Advisors, was one of the original investors in Time Warner Center, the 2.8 million-square-foot (260,000-square-meter) complex at the southwest corner of New York’s Central Park that houses the media company’s headquarters. Other investments include the Hyatt Regency Waikiki Resort & Spa; the Carr America 15-building office portfolio in suburban Atlanta; and St. Katherine Dock, a 22-acre (8-hectare) mixed-use development near the Tower of London, according to AREA’s website.
Lee Neibart, AREA’S CEO, will become a senior partner in Ares’s real estate group, according to the statement.
Ares has about $59 billion under management, according to the statement. The firm describes itself as a global alternative asset manager with concentrations in private equity, private debt and capital markets, including high-yield bonds and other fixed-income investments. Jacuzzi Brands Corp., Simmons Bedding Co., 99 Cents Only Stores and Marietta Corp. are among companies in which Ares has invested, according to its website.
The acquisition is subject to regulatory and investor approval, the companies said in the statement. They didn’t say when they expect the deal to be completed.
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