Apollo Global Management has bought a real estate portfolio in Cologne for its pan-European distressed debt fund.
The US investment manager said it had acquired 17 buildings in the TechnologiePark Köln for a price “in the lower three-digit million euro range”.
The investment has been made for the Apollo European Principal Finance III Fund. Earlier this year, IPE Real Estate reported that Apollo was seeking to raise €2.7bn for the fund.
The transaction involves the acquisition of shares in the holding companies of the assets and the loans attached to them.
The 123,000sqm portfolio, which includes a hotel and conference centre and is 67% occupied, was previously owned by a family office.
Apollo carried out the deal in collaboration with the Silverton Group, which will manage the assets and oversee refurbishment works.
Stefan Dölker, managing partner of Silverton, said: “Because of its complex ownership and financing structures, the TechnologiePark Köln has built up a considerable refurbishment backlog in recent years.
“We intend to rectify this quickly, by carrying out extensive refurbishment works and a partial revitalisation of the park.
“We are also planning a district development, with a modern office and café/restaurant concept, in the core area of the park.”