Apollo Global to provide EUR 1B capital solution to Vonovia

Apollo (APO) announced that, on behalf of its affiliated and third-party insurance clients and other long-term investors, it has agreed to invest EUR 1 billion in a portfolio of high-quality real estate assets controlled by Vonovia (VNNVF). Proceeds from the investment support Vonovia’s capital allocation plans while allowing Apollo’s insurance and institutional clients to access a portfolio of long-dated, high-quality assets. The transaction is designed to benefit from highly resilient income, with the 21k high occupancy residential units in the portfolio generating strong cash flows and performance to-date. Inclusive of the EUR 1 billion Vonovia commitment, Apollo has originated over $18 billion of transactions for its high grade alpha strategy since the start of 2022. Apollo believes its platform is uniquely positioned to serve the needs of retirement services companies and other long-term investors seeking high-quality yield assets. Apollo originates, structures, and invests in high grade alpha transactions on behalf of its own balance sheet, providing a high degree of alignment with third-party insurance SMAs and syndicate investors. The Vonovia investment is subject to the satisfaction of closing conditions and expected to be completed in the second quarter of 2023. Latham & Watkins LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are serving as legal counsel to Apollo, while Apollo Capital Solutions provided structuring and syndication services in connection with the transaction. J.P. Morgan is acting as exclusive financial advisor to Vonovia, and Freshfields Bruckhaus Deringer is serving as legal counsel to Vonovia.