Apollo Invests $190 Million in Real Estate Debt

Commercial

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New York-based real estate investment trust Apollo Commercial Real Estate Finance has completed $190 million in investments that include the recent acquisition of a minority ownership in KBC Bank Deutschland AG.

Apollo said it closed a $15 million subordinate loan, deployed $29.3 million in equity for the acquisition of commercial mortgage-backed securities with an aggregate purchase price of $146.3 million, and was one of the investors that acquired minority ownerships in KBCD, the German subsidiary of Belgian KBC Group NV.

Including the KBCD transaction, the REIT said in a press release Wednesday, year-to-date Apollo has committed to invest over $754 million of equity into CRE debt transactions that total $1.06 billion.

The alternative-asset investing firm disclosed some specific information about the transactions.

The $15 million fixed-rate, six-year term subordinate loan has an underwritten internal rate of return of approximately 15%. It was secured by a top-tier ski resort located in Montana and has an appraised loan-to-value of approximately 59%.

To finance the CMBS transaction, which was deployed from Aug. 1 through Sept. 30, Apollo used $117 million in borrowings that were part of a master repurchase agreement with Deutsche Bank AG, according to the release. The CMBS transaction’s IRR is at approximately 18%.

Apollo, including affiliates of Apollo Global Management, invested approximately $39.5 million in the Sept. 30 minority participation acquisition of KBCD (renamed Bremer Kreditbank AG).

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