Apollo Global's real estate assets grow to $6.5bn

The New York-based private equity firm has detailed in an SEC filing how one REIT, a private fund and the acquisition of Citi Property Investors has helped it build a $6.5bn portfolio, led by Joseph Azrack (pic).

Apollo Global Management has grown Apollo Global Real Estate (AGRE) to $6.5 billion in assets under management, it has revealed.

The New York-based private equity firm’s said in an SEC filing that, as of December 31, 2010, its real estate group had built up a portfolio of around $6.5 billion of AUM and $4.8 billion of fee-generating assets through its various vehicles and structures.

Apollo Commercial Real Estate Finance, a US REIT established by the firm in 2009 to acquire, originate and manage performing first mortgages, commercial mortgage-backed securities, mezzanine investments and other commercial real estate-related assets, has amassed around $1 billion, according to the filing. The firm also revealed it had around $1.6 billion in assets for its AGRE CMBS Fund, which was launched in December 2009 to invest principally in CMBS investments by borrowing from the Federal Reserve Bank of New York’s Term Asset-Backed Securities Loan Facility (TALF) and repurchase facilities.

However, the biggest growth has come from November’s acquisition of Citi Property Investors, which has $3.6 billion in global assets. AGRE now has a team of 38 investment professionals led by Joseph Azrack in New York.

Though not within AGRE, Apollo also said it had a captive pan-Europe loan servicing and property management platform, The Lapithus Group, which operates in five European countries and is directly servicing approximately 50,000 loans secured by more than 4,500 commercial and residential properties. The platform is owned by the Apollo European Principal Finance Fund, which was launched in May 2007 to invest in European nonperforming loans. The fund has around €1.3 billion of assets.