Latham & Watkins Acted in Apollo's Additional €1 Billion Investment in Vonovia Portfolio
Apollo announced that it has entered into agreements for Apollo-managed insurance affiliates, funds, and other long-term investors to invest €1 billion into an entity owning a portfolio of high-quality real estate assets in Northern Germany controlled by Vonovia, a leading global residential real estate company with assets of approximately $100 billion. The portfolio includes approximately 31,000 high-occupancy units valued by Vonovia at €3.8 billion.
Global investment firm Apollo has announced a €1 billion investment into a portfolio of high-quality real estate assets in Northern Germany.
This investment, executed by Apollo-managed insurance affiliates, funds, and other long-term investors, will bolster Vonovia, a top-tier global residential real estate company, in its capital allocation strategies and the settlement of specific financial obligations.
The portfolio, overseen by Vonovia, incorporates 31,000 fully occupied units valued at €3.8 billion. This investment reaffirms Apollo's faith in the German residential real estate market and its dedication to collaborating with industry leaders such as Vonovia to provide compelling investment prospects for its clients.
"We are pleased to broaden our partnership with Vonovia and provide another scaled capital solution by investing in a portfolio of high-quality, high-demand residential real estate assets," said Jamshid Ehsani, Partner at Apollo.
"This investment demonstrates our commitment to identifying and executing attractive opportunities in the German real estate market," Ehsani added.
This investment represents Apollo's second substantial transaction with Vonovia in recent months. Earlier this year, Apollo funds injected €1 billion into a Vonovia portfolio located in Southwest Germany. With this latest investment, Apollo has now pledged a total of €2 billion to Vonovia's premium residential real estate assets.
Latham & Watkins LLP represented Apollo in the transaction with a private equity real estate team led by Frankfurt partners Otto von Gruben and Carsten Loll. The team also included New York partner and Global Co-Chair of the Real Estate Practice Michael Haas and New York partner Gary Boss, along with Frankfurt counsel Sven Nickel, Hamburg counsel Hendrik Hauke, and associates Dominik Waldvogel, Henriette Hosemann, Jana Maué, Sebastian von Hornung, Marie-Christine Welp, Katharina Wolf, and Edward Martin.
Advice on finance matters was provided by Frankfurt partner Torsten Volkholz, with Munich associate Julia Bräuer; on antitrust matters by Frankfurt partner Max Hauser, with associate Helena Hofmann; on tax matters by Hamburg partners Tobias Klass and Verena Seevers and New York partner Bora Bozkurt; and on employment matters by Munich partner Tobias Leder with associate Martina Hölzer.