Ares to Buy $11.6 Billion U.S. Real Estate Firm Black Creek (1)

Ares Management Corp. is buying real estate company Black Creek Group, boosting the private equity firm’s portfolio of U.S. industrial assets.

Under the cash-and-shares transaction, Ares will take control of Black Creek’s $11.6 billion, U.S.-focused property-fund business, according to Bill Benjamin, head of real estate at Ares. While no price was disclosed, Ares announced Thursday that it would issue $137.5 million worth of stock to Black Creek shareholders. A Mexico franchise was excluded from the purchase.

Black Creek senior executives including Chief Executive Officer Raj Dhanda will join Ares upon the deal’s completion, Dhanda said in an interview. ...