Ares Real Estate Income Trust to Acquire Texas Apartment Portfolio
April 14, 2022 | James Sprow | Blue Vault
On April 7, 2022, AREIT Acquisitions LLC, a wholly-owned subsidiary of Ares Real Estate Income Trust Inc. entered into a Real Estate Purchase and Sale Agreement with a number of sellers to acquire a 100% interest in five multi-family apartment projects totaling 1,667 units (the “Sherman Portfolio”). The Sherman Portfolio is located across the San Antonio and Dallas markets and is currently 94.8% leased. Upon consummation of the acquisition, the lease agreements with customers and other entities are expected to be assigned to and assumed by the Company through its wholly-owned subsidiaries.
The total purchase price is expected to be $448,000,000, subject to customary prorations and exclusive of transfer taxes, due diligence expenses, and other closing costs. The Sellers are not affiliated with the Company or its affiliates. The Company’s due diligence was completed prior to execution of the Agreement and concurrent with or promptly following the execution of the Agreement, the Company has or will deposit $10,000,000 into an escrow account, which amount is required to proceed to closing. The Company plans to fund this acquisition using proceeds from the Company’s public offering and borrowings from the Company’s corporate line of credit.
The acquisition of the Sherman Portfolio is expected to close during the second quarter of 2022. There is no assurance that the Company will be able to purchase the Sherman Portfolio on the terms set forth herein. The consummation of the acquisition is subject to the Company’s completion of various closing conditions to be met by the parties. If the Company does not close on the acquisition, there are circumstances under which it may forfeit the deposit it has funded.
Ares Real Estate Income Trust Inc. was formerly Black Creek Diversified Property Fund, Inc. The REIT was renamed when Black Creek Group was acquired by Ares on July 1, 2021. The REIT is a net asset value (“NAV”)-based perpetual life REIT formed on April 11, 2005. It is primarily focused on investing in and operating a diverse portfolio of real property and investing in other real estate-related assets. As a NAV-based perpetual life REIT, it conducts ongoing public primary offerings of its common stock on a perpetual basis. During 2021, it raised $251.5 million of gross proceeds from the sale of common stock and $23.2 million via the DRP.
Source: SEC
