Apollo European Principal Finance Fund III (Apollo EPF III), a fund managed by affiliates of Apollo Global Management, Inc., has agreed to acquire a portfolio of real estate assets from Fondazione Ente Nazionale di Previdenza ed Assistenza dei Medici e degli Odontoiatri (ENPAM), the Italian pension fund, 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,” he added.
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.
Apollo said the transaction is expected to close by year end.