Apollo raises $1.4b for third European property fund

The real estate arm of private equity group Apollo Management has raised $1.4 bn (EUR 910 mln) in equity after the final closing for its third dedicated European fund. Apollo Real Estate Advisors said the Apollo European Real Estate Fund III would pursue investments of real estate assets and portfolios throughout Europe.

In particular, Apollo said it anticipates 30-40% of the fund will be invested in the UK. Another 30-40% will be invested in Western European countries such as France, Germany, Switzerland, Italy and Spain, with about 20-25% in Central and Eastern Europe.

Apollo said the fund will continue with the group's strategy of investing in fundamentally sound but under-managed assets, selectively undertaking development when it believes risk adjusted returns are compelling.

The fund, which had its first closing on 31 July 2007 and its final closing on 27 January 2008, has already made some acquisitions. In partnership with Citrus Group, it acquired 15 upmarket care homes in northern England for £95 mln. (EUR 125 mln). Through a joint venture with Multi Turkmall, Apollo's third European fund acquired the Merter Shopping centre in Istanbul for EUR 260 mln, with a further EUR 325 mln committed to development.