Apollo Real Estate Advisors is to target Europe with $1.5bn of fresh capital, with the raising of a second international fund.
Apollo European Real Estate Fund II, which will only target Europe, is aiming to attract between $300m and $500m. With gearing and joint-venture equity, it will have up to $1.5bn to spend.
The first international fund, which also targeted Japan, completed 19 deals in Europe and two in Japan.
William Benjamin, managing partner in Europe for Apollo, said he expected non-US capital to rise from 20% last time to around 40% for the second fund.
The eight-year fund will be a Delaware-based limited partnership with parallel vehicles to accommodate non-USinvestors. The fund may also take equity contributions from high-net-worth individuals.
Benjamin said the fund would have a value-added strategy, and would give opportunity fund-style returns.
Apollo expects the UK to receive around a 40% allocation, western Europe another 40% and central Europe 20%.
References: EGi News 05/04/04
