Apollo Global Management has teamed up with illimity Bank to invest up to €500m in distressed loans secured by real estate assets in Italy.
The 50:50 joint venture – between a number of unnamed Apollo funds and the Milan-headquartered Italian digital bank – will pursue investments in nonperforming and unlikeliness to pay loans mainly secured by real estate assets and with a single price of up to €50m.
The companies said the venture, which is yet to be finalised, intends to have an initial investment period of 2 years.
Illimity said it will contribute approximately €231m of gross nominal value of loans previously purchased by illimity, which is representative of part of the current special situation real estate investment portfolio of the bank.
The venture has appointed Illimity Group’s subsidiary Neprix as sole special servicer for the management of the investments.
Andrea Clamer, head of distressed credit and servicing division of illimity, said the selection of Neprix as sole special servicer accelerates the development of neprix’s third party servicing activities and is the recognition of the quality of the management of non-performing loans activities and of the success of the underlying business model.
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