The European division of New York’s Apollo Real Estate Advisors has entered into talks to form a joint venture with the German business of UK property manager Capital & Regional.
Capital & Regional confirmed the talks following a report in the Financial Times which suggested they represent the latest equity raising exercise for the company which carried out a rights issue for a separate UK shopping center fund earlier this year.
Capital & Regional owns around €668 million ($997 million) of German property assets, having entered the country in 2005.
Though Capital & Regional confirmed the talks, no other details were released.
According to the company’s website, Capital & Regional owns a portfolio of 50 properties in Germany targeting mainly retail parks on the edges of German towns. Metro Group is the company’s most important tenant as it occupies 38 percent of the whole portfolio by floorspace. Debt in the company increased from €419 million in 2006 to €485 million.
Apollo is currently investing out of its third European vehicle, Apollo European Real Estate III, which raised $1.4 billion in March this year. Since then, it has also set up a European debt division in Europe by acquiring Stoneleigh Capital.
Apollo Real Estate Advisors is separate from Apollo Global Management, the private equity firm run by Leon Black. Earlier this year, Apollo Global Management was scouting for someone to spearhead a drive into real estate, as revealed by PrivateEquityRealEstate.com in July.