Apollo’s European Principal Finance Business to Acquire Real Estate Assets from ENPAM

Rhea-AI Summary

Apollo EPF III has entered a definitive agreement to acquire a portfolio of real estate assets from ENPAM for €842 million. The portfolio consists of 68 commercial and residential properties, mainly located in Rome and Milan. This divestment allows ENPAM to enhance its financial flexibility and better serve its pensioners. Apollo's transaction is part of their strategy to expand their European real estate portfolio, which includes $7 billion in assets under management as of June 30, 2021. The deal is expected to close by year-end.

Positive

• Acquisition of a €842 million portfolio enhances Apollo's European real estate assets.
• Increases financial flexibility for ENPAM to improve retirement services.
• Portfolio includes high-quality assets in prime locations, potentially attractive to investors.

Negative

• None.

NEW YORK, Aug. 05, 2021 (GLOBE NEWSWIRE) -- Apollo European Principal Finance Fund III (“Apollo EPF III”), a fund managed by affiliates of Apollo Global Management, Inc. (together with its consolidated subsidiaries, “Apollo”) (NYSE:APO), today announced it has entered into a definitive agreement with the Italian pension fund Fondazione Ente Nazionale di Previdenza ed Assistenza dei Medici e degli Odontoiatri (“ENPAM”) to acquire ENPAM’s directly owned portfolio of real estate assets (the “Portfolio”) for €842 million.

The Portfolio comprises 68 high-quality commercial and residential assets, including hotel, retail, logistics and parking assets primarily located in the economic hubs of Rome and Milan.  

“We are pleased to reach this agreement with Apollo to help deliver on our primary objective of providing retirement income to ENPAM pensioners”, said Chairman of the pension fund Alberto Oliveti. “As we prepare to reach the peak of retirement for our members, this divestment allows us to realize 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”.

Skardon Baker, Head of European Principal Finance, 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”.  

“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”, continued Samuele Cappelletti of Apollo.

Apollo’s European Principal Finance business is the second largest, closed-end fund franchise within Apollo, following only the flagship private equity funds, with $7 billion of assets under management as of June 30, 2021. The EPF funds sit at the crossroads and tap all three of Apollo’s three business strategies: yield, hybrid and opportunistic. The first EPF fund launched in 2009 and was created to capture a broad range of opportunities arising from distress, deleveraging and the realignment of financial service models. Since inception, the EPF funds have invested over $9 billion of capital.

Advisors to the Apollo Funds in this transaction included Realty Partners, with the support of JLL and Conio, as commercial advisors; Lazard as financial advisor; Belvedere Inzaghi as legal diligence advisor; BonelliErede and Vinson & Elkins as transaction counsel; and BonelliErede for tax advisory.

Duff & Phelps acted as an independent evaluator and Deloitte Financial Advisory acted as financial advisor to ENPAM. Angelo Piazza, Luca Leone and Paola Conio acted as legal counsel and Stefano Petrecca (CBA) as tax advisor to ENPAM.

The transaction is expected to close by year end.

About Apollo

Apollo is a high-growth, global alternative asset manager. We seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three business strategies: yield, hybrid and opportunistic. Through our investment activity across our fully integrated platform, we serve the retirement income and financial return needs of our clients, and we offer innovative capital solutions to businesses. Our patient, creative, knowledgeable approach to investing aligns our clients, businesses we invest in, our employees and the communities we impact, to expand opportunity and achieve positive outcomes. As of June 30, 2021, Apollo had approximately $472 billion assets under management. To learn more, please visit www.apollo.com.

About ENPAM

ENPAM (Ente Nazionale di Previdenza e Assistenza dei Medici e degli Odontoiatri) is Italy’s largest private first-pillar pension fund. Established in 1937, it provides retirement benefits and insurance to nearly half a million medical doctors and dentists. ENPAM has over 25 billion euros in assets under management.

Contacts

Apollo

For Investors
Peter Mintzberg, Head of Investor Relations
Apollo Global Management, Inc.
+1 (212) 822-0528
APOInvestorRelations@apollo.com

For Media
Joanna Rose, Global Head of Corporate Communications
Apollo Global Management, Inc.
+1 (212) 822-0491
Communications@apollo.com

FAQ

What is the value of the real estate portfolio acquired by Apollo EPF III?

The real estate portfolio acquired by Apollo EPF III from ENPAM is valued at €842 million.

How many assets are included in Apollo's acquisition from ENPAM?

The acquisition includes 68 high-quality commercial and residential assets.

Where are the acquired properties located?

The properties are primarily located in the economic hubs of Rome and Milan.

When is the acquisition transaction expected to close?

The transaction is expected to close by year-end.

What is the strategic significance of this acquisition for Apollo?

This acquisition expands Apollo's European real estate portfolio and enhances their asset management capabilities.