Ares Upsizes Affiliated Investment in Nontraded REIT to $300 Million
Ares Real Estate Income Trust Inc., or AREIT, has received an additional $100 million affiliate capital commitment, bringing the total investment from an Ares-affiliated special purpose vehicle to $300 million, the company disclosed Thursday.
The fund entered into an amendment to a subscription agreement originally executed in October 2025 with Ares Apogee Finance HoldCo L.P., a special purpose vehicle affiliated with AREIT’s adviser, Ares Commercial Real Estate Management LLC. Under the amended agreement, Apogee SPV will purchase an additional $100 million in Class B common shares, with the shares to be issued June 1 at the fund’s April 30 NAV per share of $8.1640. As previously reported by AltsWire, Apogee SPV made an initial $200 million purchase of Class B shares in November 2025.
The upsize is structured on identical terms to the original investment. All shares purchased by Apogee SPV are subject to a three-year lock-up from the original October 2025 purchase date, meaning the affiliate cannot seek redemptions until October 2028 at the earliest. After the lock-up expires, Apogee SPV’s redemption requests are subordinate to those of all other common stockholders under AREIT’s share redemption program. The amendment also preserves a provision allowing Apogee SPV to require the fund to repurchase up to $7.5 million in shares per quarter after the lock-up, outside the SRP, at the prevailing NAV per share, separate from the SRP.
The additional commitment arrives as the fund has posted recent gains in NAV and capital raise. AREIT raised $401 million in Q1 2026 and reported 45.2% rent growth across its industrial portfolio on a GAAP basis in the first quarter. Through April, the fund reported an aggregate NAV of $3.41 billion, up from $3.39 billion at the end of March, with April redemption requests fully satisfied at $11.6 million. Quarter-to-date fundraising through April stood at approximately $126 million.
The upsize comes as private placement REITs broadly posted their second-highest quarterly fundraising on record in Q1 2026, raising $2.3 billion, according to Robert A. Stanger & Company. AREIT joined the segment when it transitioned from a public to a perpetual private offering in July 2024.
The offer and sale of the upsize shares to Apogee SPV is exempt from Securities Act registration pursuant to Section 4(a)(2) based on Apogee’s status as an institutional accredited investor.
Ares Real Estate Income Trust is a nontraded perpetual life REIT sponsored by Ares Real Estate, an affiliate of Ares Management Corporation. The fund’s portfolio spans 144 properties totaling approximately 30.7 million square feet across 34 U.S. markets, with occupancy of 94.5% as of April 30, 2026.
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