Italy’s largest private pension fund has sold its directly-owned domestic real estate portfolio to Apollo Global Management for €842m.

Fondazione Ente Nazionale di Previdenza ed Assistenza dei Medici e degli Odontoiatri (ENPAM) said it sold the 68 hotel, retail, logistics and parking assets due to the maturing of the €25bn pension fund.

Chairman of the pension fund Alberto Oliveti said: “As we prepare to reach the peak of retirement for our members, this divestment allows us to realise important savings and to allocate the proceeds towards diversified, mission-related investments that will offer adequate reserves and returns to meet our commitments. We look to the future with even greater peace of mind”.

The assets, located mainly in Rome and Milan, are being acquired by Apollo European Principal Finance Fund III.

It is the third in a series of funds that started in 2009, designed to capitalise on distress, deleveraging and the realignment of financial service models in Europe.

Apollo said it had invested more than $9bn (€7.59bn) through the funds over that time.

Skardon Baker, head of European principal finance at Apollo, said: “This transaction demonstrates our ability to source and execute unique, complex opportunities that expand our European real estate portfolio and exemplifies Apollo EPF’s continued commitment to working with European financial institutions to achieve mutually beneficial outcomes – in this case using our transitionary capital to provide ENPAM with greater liquidity and financial flexibility to serve its pension members.

“We remain focused on broadening our European portfolio and building on our strong foundation of successful strategic real estate investments in Italy.”

Samuele Cappelletti, managing director at Apollo, added: “These high-quality properties in prime locations with strong alternative-use potential are a great fit for our multi-disciplinary asset management capabilities.

“With a truly heterogenous portfolio composition and increased market demand, we are confident that this group of assets will be attractive to tenants as well as local and international investors.”