New York-based private equity firm Apollo Management is reportedly buying a $2.8 billion portfolio of commercial real estate loans from bank, Credit Suisse.
Apollo is buying the book for $1.2 billion according to the Wall Street Journal, which said the loans were backed by apartment buildings in Germany and hotels in Denmark, Sweden and France.
The newspaper did not report whether the deal was being made by Apollo Real Estate, its property arm, or by a private equity fund managed by the company.
According to the report, Credit Suisse is providing vendor financing and is retaining a stake in the joint venture with Apollo. This would be similar to a previous deal that was struck by the bank in 2009 with Lone Star Europe. In that instance, Credit Suisse retained a 49 percent stake in the ownership vehicle.
This latest deal follows reports back in June this year when Forum Partners was said to be examining a commercial real estate loan book of similar size being sold by Credit Suisse. In the event, that did not progress to a conclusion, raising the possibility that the deal with Apollo is for the same portfolio.
The Wall Street Journal said today the portfolio Apollo was buying had been written down “well below its face value”.