Ares Moves on £200M+ Deal in St James’s Place Sell-Off
Ares Management is in discussions to acquire a significant portion of the £1.84 billion commercial property portfolio being sold off by St James’s Place (SJP), the UK’s largest wealth manager. The deal, expected to exceed £200 million, includes five assets, among them 25 Great Pulteney Street in London’s West End and the Albany Park industrial estate in Frimley, alongside other industrial and retail properties.
St James’s Place announced its plan to wind down all three of its UK property funds last year, citing ongoing challenges in the real estate sector and anticipated regulatory changes impacting open-ended property funds. The funds being liquidated—its Property Unit Trust, Pension Fund, and Life Fund—hold a combined £1.84 billion in assets. The full sell-off is expected to take around two years, with investors receiving periodic returns.
Invesco has taken over management of the wind-down from Orchard Street, the previous fund manager. St James’s Place suspended dealings in its property unit trust in October 2023, joining other open-ended funds facing similar liquidity challenges.
The UK’s open-ended real estate funds have faced growing scrutiny over the years due to the difficulty of selling physical assets quickly in volatile markets. The Bank of England and the Financial Conduct Authority have been reviewing the sector, with potential regulations that could impose up to a 180-day delay on investor redemption requests.
Ares Management, a major player in global alternative investments, currently oversees more than $484 billion in assets across credit, real estate, private equity, and infrastructure.
Neither Ares, St James’s Place, nor Invesco have commented on the transaction.
Explore More Insights
