Ares Management Corp. Proposes Acquisition of Majority Stake in HK$10.2 Billion The Corniche Project Loan

Alternative investment manager Ares Management Corp. has proposed to purchase a stake in a $1.3 billion project loan backing luxury-property development The Corniche in Hong Kong from some banks. Ares offered a price of 95 cents on the dollar for the syndicated loan and aims to acquire a majority stake or two-thirds of the loan.

Key Takeaways

• Ares Management Corp. has proposed to buy out a stake in a $1.3 billion loan backing luxury-property development The Corniche in Hong Kong.
• Ares is offering a price of 95 cents on the dollar for the syndicated loan.
• The company aims to buy a majority stake, or two-thirds of the loan.
• The proposal indicates Ares' strategic move in the alternative investment market.
• This potential acquisition demonstrates Ares' interest in expanding its investment portfolio in the real estate sector.

News Content

Alternative investment manager Ares Management Corp. has made a proposal to acquire a stake in a HK$10.2 billion project loan backing the luxury-property development The Corniche in Hong Kong. The proposal entails offering a price of 95 cents on the dollar for the syndicated loan, with Ares seeking to purchase a majority stake or two-thirds of the loan. This move signals Ares' interest in investing in the Hong Kong property market and could have significant implications for the project's backers and the real estate sector in the region.

Analysis

Ares Management Corp.'s proposal to acquire a stake in The Corniche project loan indicates its interest in the Hong Kong property market. This move could signal a potential shift in investment focus and have significant implications for the project's backers and the wider real estate sector in the region. If successful, Ares' acquisition could impact the completion and future development of The Corniche, potentially influencing the perception of foreign investment in the Hong Kong property market. In the long term, this move may also spur further interest from other alternative investment managers in the region's real estate projects, potentially reshaping the investment landscape.

Do You Know?

• Alternative investment manager Ares Management Corp.: Ares Management Corp. is an alternative investment manager that specializes in credit, private equity, and real estate. They are known for managing and investing in various alternative asset classes, such as distressed debt, direct lending, and infrastructure.

• Syndicated loan: A syndicated loan is a loan that is provided by a group of lenders working together to provide funds to a single borrower. It is often used for large-scale projects or corporate financing, and the risk and profits associated with the loan are shared among the lenders.

• Luxury-property development The Corniche in Hong Kong: The Corniche is a high-end property development project located in Hong Kong. It is likely to be targeted towards affluent buyers and investors, and the successful acquisition of a stake in its project loan by Ares Management Corp. could have ripple effects on the real estate market in the region.