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A Haven Ground Lease Can

  • Reduce your equity requirement
  • Enhance your asset value
  • Increase your Structuring Flexibility

A Haven Capital Ground Lease is a funding solution for stabilized assets, recapitalizations, redevelopments or repositionings, lease ups, and developments.

BENEFITS OF​ A Haven Ground Lease

Enhance your Asset Value by Separating Land and Building

A Haven ground lease may increase overall asset value by separating the low-risk land (targeting a low ROE) from the building owner targeting a higher ROE.

Reduced Equity Requirements

Combination of a ground lease and separate financing of the remaining leasehold interest maximizes funding proceeds and reduces equity required.

Reduced cost of capital

Ground leases reduce the overall cost of capital and provide for long-term fixed funding at low rates.

Reduced Credit Risk for Asset Owner Through Long-Term Predictable Financing

Reduces exposure to the credit cycle with 99-year financing, locking in low long-term rates. Ground rent payments will have predetermined annual increases, with no FMV resets.

Flexible Structure to Benefit Building Owners

A Haven ground lease is custom-tailored to the needs of property owners in all major real estate asset classes and is structured to address each asset’s specific business plan including development, renovation or recapitalization.

  • A Haven ground lease also offers an option for the building owner to repurchase the land in the future.

Leasehold Lender-Friendly

Our ground lease has been carefully constructed with lenders in mind, including banks, CMBS, life companies and agencies.

Capital Structure and Potential Value Enhancement

Separating the fee simple and leasehold interest is a more efficient form of financing and helps unlock asset value. The example provides a hypothetical example of how this works.

Target Asset Classes and Markets

Target assets will cover all top MSAs and all major real estate asset classes, as well as corporates and other owners of real estate. We will tailor the ground lease structure depending on the specific asset class and transaction structure.

low-angle photography of black glass high-rise building under a calm blue sky

Office

  • Traditional OFFICE
  • Medical Office
  • Life Science
distribution

Industrial

  • INDUSTRIAL
  • Logistics
  • Cold Storage
low-angle photography of building

Retail

  • Shopping Centers
  • Strip Centers
coconut palm trees in hotel lobby

Leisure

  • Hotel
  • Resorts
brown concrete building during daytime

Residential

  • Multifamily
  • Student Housing
  • Senior Housing

Minimum guide transaction size of $60 million total asset value (pre-split) in a single asset or portfolios.

About Haven Capital

Haven Capital is a real estate finance platform formed by Ares and Regis Group.

Ares Management Corporation (NYSE: ARES) is a publicly traded, global alternative investment manager with approximately $334 billion of assets under management (“AUM”). Ares has over 2,310 employees operating across North America, Europe and Asia Pacific. Ares operates integrated businesses groups across Credit, Private Equity, Real Estate and Strategic Initiatives.

The Ares Real Estate Group manages comprehensive public and private equity and debt strategies, with approximately $50.2 billion of AUM as of June 30, 2022. For more information please visit www.aresmgmt.com.

Ares’ Alternative Credit strategy, with approximately $19.2 billion of AUM as of June 30, 2022, focuses on direct lending and investing in assets that generate contractual cash flows and fills gaps in the capital markets between credit, private equity and real estate.

For more than 40 years, Regis has been a leading real estate private equity investor and operator with more than $16B of investment across national real estate platforms in the US and the UK. Their proven strategies combine operational expertise, technological innovation and deep knowledge of financial structuring.

Notes:

  1. As of September 30, 2020. AUM amounts include funds managed by Ivy Hill Asset Management, L.P., a wholly owned portfolio company of Ares Capital Corporation and a registered investment adviser. AUM amounts include approximately $6.9 billion of AUM as of June 30, 2020 pro forma for Ares Management’s acquisition of SSG Capital Holdings Limited, which closed on July 1, 2020.  Past performance is not indicative of future results.