Credit funds managed by Ares Management Corporation have agreed to invest up to SEK 2 bn (€200 mln) in Gladsheim Fastigheter, a Swedish rented residential specialist.
Ares will invest the preferred equity over the next four years, allowing Gladsheim to further increase its portfolio growth, with a focus on multi-family rental housing.
Gladsheim acquires, manages and develops residential rental properties located in midsize Swedish cities and university towns in growing regions with good public transportation systems.
The credit funds investing in Gladsheim were led by Ares’ Pathfinder fund, an alternative credit global fund, which has a social impact purpose. Ares and Pathfinder’s portfolio managers have committed to donating at least 10% of the fund’s carried interest profits to global health and education charities.
David Dahlgren, CEO and founder of Gladsheim Fastigheter, said: 'Since the start of 2019, Gladsheim has continuously expanded in line with its established strategy and business model, accumulating a property portfolio of more than SEK 1 bn.
'Through the agreement with Ares, we will receive the support of a professional partner with significant experience, enabling us to further increase the growth rate of the portfolio.
'The agreement provides Gladsheim Fastigheter with the financial resources and the opportunity to continue executing our long-term value creation strategy as a multi-family rental housing company.
'We remain committed to building strong relationships with tenants, interest groups, shareholders and creditors, which has been a leading factor in choosing Ares as a long-term partner.'
'We are excited to support Gladsheim in its next phase of growth and look forward to creating a scaled and diversified portfolio of multi-family properties across Sweden,' said Eli Appelbaum, managing director within the Alternative Credit Strategy at Ares.
Gladsheim was advised by Catella, Setterwalls, Amblin and Unum Tax. Ares was advised by CBRE, Vinge and Svalner.