Apollo in final three to buy Citi Property Investors

The real estate platform of Leon Black-led Apollo is vying with ING and Australia’s Macquarie Group to buy the management of the $8bn private equity real estate business of Citigroup

Apollo Global Management's real estate group has made it through to the final three on the shortlist to acquire the private equity real estate platform of Citigroup.

PERE understands that the recently-formed real estate arm of the Leon Black-led firm is up against ING Real Estate Investment Management and Australia’s Macquarie Group to land the management of the $8 billion Citi Property Investors (CPI) business, put up for sale in August.   

A nominated buyer from will be chosen by the end of January. A sale is expected to complete by the summer.

The chosen buyer will be decided by Citigroup and Park Hill Group, the Blackstone Group-owned advisory business which is representing the various LPs invested in CPIs three regional funds: CPI Capital Partners Europe, which closed on €1.16 billion in November 2006; CPI Partners North America, which closed on $600 million in November 2006; and CPI Capital Partners Asia Pacific, which closed on $1.29 billion in February 2007.

CPI’s European fund has the most uncommitted investment capital, while the North American vehicle still has uncommitted capital but this nearing its expiry. The firm has committed all of its equity raised for its Asia fund and has, effectively, switched the regional platform’s strategy from acquisition and asset management.

One option in the early stage of the sales process was for the platform’s president and chief executive officer, Roger Orf, to lead a management buyout, however this option has not met with approval from Citigroup.

No parties involved in the sale process would comment.