Black Creek Diversified Property Fund Inc., a publicly registered NAV-based perpetual life real estate investment trust managed by Ares Management Corporation (NYSE: ARES), has changed its name to Ares Real Estate Income Trust.
The REIT also adopted an amended share redemption program where its ability to terminate the program has been revised.
As amended, the board may modify or suspend the program if it’s in the best interest of the REIT and its stockholders. This can include when a redemption request would place an undue burden on liquidity, adversely affect operations, or risk having an adverse impact that would outweigh the benefit of the redemption offer.
In addition, the REIT may suspend the share redemption program due to regulatory changes, changes in law, or if it becomes aware of undisclosed material information that should be publicly disclosed before shares are redeemed. If the share redemption program is suspended, the board will be required to consider at least quarterly whether to continue the suspension.
The board cannot terminate the share redemption program unless the REIT’s shares were to list on a national securities exchange or where otherwise required by law.
In July 2021, Ares Management Corporation, a global alternative investment manager, completed its acquisition of Black Creek Group’s U.S. real estate investment advisory and distribution business, which had $11.6 billion of assets under management.
The REIT launched in January 2006 and has raised more than $2.73 billion in multiple offerings. In its current offering, it has raised approximately $566.7 million from the sale of approximately 74.7 million shares, including proceeds from the distribution reinvestment plan of approximately $42.5 million, as of November 1, 2021.
As of October 31, 2021, the REIT’s portfolio included $3.04 billion in real estate properties and $48 million in debt related investments.
For more Ares/Black Creek news, please visit their directory page.