New York’s Apollo Real Estate Advisors has invested part of its $1.4 billion (€998 million) dedicated European vehicle, Apollo European Real Estate III, in German property.
According to a statement to the London Stock Exchange by UK property company and fund manager Capital & Regional, Apollo has bought approximately half of Capital & Regional's German portfolio and completed the buyout of the majority of the equity interest that subsidiary Hahn Group held in the German business.
Capital & Regional said net proceeds were £44.7m (€56 million; $77 million), which it has used to pay down existing bank debt.
The announcement comes two months after the two firms revealed the tie-up and sale.
In August, Capital & Regional said Apollo would acquire approximately half of Capital & Regional's equity investment in the German portfolio for a cash consideration of €65.6 million. The parties would also together buy out the equity interest that the Hahn Group holds in part of the portfolio for €12 million in cash. The transaction would be structured, it said, so the existing bank debt and interest rate swaps would remain in place.
The portfolio comprises 50 retail unit it out-of-town locations predominantly across western Germany. There is a total of 472,000 square meters of leasable space plus 161,000 square meters of development land which will both continue to be managed by Capital & Regional's team.
Apollo European Real Estate III was closed in March this year.
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