Ares US Real Estate Opportunity Fund III
AREOF III Summary of Terms
To date, AREOF III has closed on capital commitments of $1.2 billion
General Terms
The Partnership
General Partner
Manager
Target Fund Size
Sponsor Commitment
Minimum Commitment
Investment Period
Term
Maximum Leverage
Targeted Return(¹)
Management Fee
Acquisition Fee
Disposition Fee
Distributions
Ares US Real Estate Opportunity Fund III, L.P., a Delaware limited partnership
Ares US Real Estate Opportunity Advisors III, L.P.
Ares Real Estate Management Holdings, LLC
$1.5 billion; Approximately $1.2 billion closed to date
Ares Management Corporation, its investment professionals and other affiliated and related persons and entities will commit
$25 million to the Fund
$10 million from each Limited Partner; the General Partner may accept smaller Commitments at its discretion
Three years from the final closing
Eight years from the final closing, with the possibility of one one-year extension at the discretion of the General Partner and an
additional one-year extension period with approval from the Advisory Board
The amount of investment-level debt incurred by the Fund will be limited to 70% of the portfolio value of the Fund's
investments (as calculated at the time leverage is incurred), based on, with respect to each investment, the greater of (i) the
cost of each investment, or (ii) the fair market value of each investment.
Gross IRR of 18% to 20% and net IRR of 15% to 17%
1.0% on uncalled commitments during the Investment Period and 1.5% on invested capital, subject to certain adjustments,
during and after the Investment Period
None
None
Distributable proceeds will be distributed to each Limited Partner as follows:
First, 100% until it has received a 9% preferred return;
Second, 100% until it has received a return of all capital contributions;
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Third, 40% to each Limited Partner and 60% to the General Partner until the General Partner has received 20% of the
amounts distributed to such Limited Partner and the General Partner; and
Fourth, 80% to each Limited Partner and 20% to the General Partner.
Please refer to the Fund's Private Placement Memorandum & Supplement(s) for a full description of the partnership terms.
1. Target returns are not a reliable indicator of future performance and no guarantee or assurance is given that such returns will be achieved or that an investment in the Fund will not result in a loss. Target returns are
based on management's assumptions, which may differ from actual events or conditions, take into account anticipated use of leverage and assume the reinvestment of proceeds from asset liquidations, income, and
other earnings. Target Gross returns do not reflect management fees, performance fees/carried interest and other expenses. Target net returns reflect the deduction of management fees, performance fees/carried
interest and other expenses.
Confidential - Not for Publication or Distribution
ARES
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