Apollo Global Management funds have acquired a controlling majority stake in a €98m listed Gerrman real estate business.
The manager’s Apollo European Principal Finance Fund III (EPF III) is funding the acquisition of 75.02% of common shares in Agrob Immobilien and 20.12% of Agrob’s preference shares from HVB Gesellschaft für Gebäude mbH.
Munich-listed Agrob owns and manages a fully-let 103,000sqm media and business park in the Munich suburb of Ismaning.
The $4.6bn EPF III fund pursues a value-oriented, opportunistic strategy by primarily acquiring non-performing, non-core, and capital inefficient whole loans, real assets and performing credit instruments, as well as associated operating platforms.
EPF III has been one of the most active investors in the German office market in recent years and currently manages more than €1bn of office and logistics assets.
Apollo funds have also been increasingly active in the publicly listed real estate sector, following the significant investment in DEMIRE Deutsche Mittelstand Real Estate AG in February last year and the indirect investment in ADO Properties in September 2017.
Sebastian-Dominik Jais, partner at Apollo, said: “We are excited for the Apollo funds to acquire a majority stake in Agrob.
“Apollo has been one of the most active investors in the German office space over the last several years, and this transaction represents an opportunity to grow our portfolio in one of Germany’s strongest markets.”