Apollo, one of the largest fund managers in the world, has emerged on the Spanish real estate market as a major new player alongside, Värde, Castlelake and Lone Star.
Led by Andrés Rubio in Spain, Apollo is currently analysing the purchase of its own property developer according to sources familiar with the entity. The firm plan to use a fund currently worth €2,700 million for the acquisition of real estate assets, with the intention of raising a further €1,300 million to dedicate to the initiative. The €4,000 million total raised funds will be set aside for NPL’s and hotel portfolios in Spain, Italy, UK, Ireland and Germany. In the event that Apollo continues its commitment to the hotel sector, Spain is excepted to receive up to €1,000 million in investment. In December, they acquired two portfolios from CaixaBank and Popular, and are expected to continue to make a mark in the property development business over the coming 3-4 years.
Apollo plans to invest up to €1,000 million of the assigned fund into the residential sector, with a particular focus on build-able land in Madrid and Barcelona, the two provinces where the incipient recovery is being felt most strongly. The aim is to become a top-tier player in the property development sector over the next three or four years, and to create its own reputable hotel platform in line with that of its competitors.
The firm is also seeking to make a mark within the tourist segment in Spain and they are actively looking for well-located establishments along the Spanish coastlines and popular islands to purchase loan portfolios of around 20 assets.