Regis, Ares Forge JV to Take Ground Lease Positions
Regis Group and funds managed by Ares Management Corporation have formed Haven Capital, an originator of customized ground lease positions in high-quality assets across the U.S. Formed as a joint venture between Regis and the Ares funds, Haven Capital aims to capitalize ground lease opportunities in most real estate sectors, with an initial capacity exceeding $1 billion.
For real estate owners and developers, Haven Capital’s 99-year ground lease structure has the potential to increase asset values by separating land and buildings while reducing equity requirements, the JV said. Joe Shanley, a VP with SL Green Realty Corp., will lead the new platform.
“The formation of Haven Capital marks the entry of well-established institutional investors into what we believe is a largely untapped sector for commercial property investment,” said Shanley. “Ground leases are an underutilized tool that provides an alternative source of capital for both existing assets and ground-up developments.”
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