A 50-50 joint venture has been announced by Illimity Bank and Apollo Global Management in the real estate non-performing loans segment. The two companies announced in a joint statement that they have "signed a binding letter of intent to form a joint venture (50/50) with some funds managed by Apollo Global Management aimed at investing up to 500 million euros in single name non-performing loans of a real estate nature in Italy".
The JV, the note explains, will have an initial investment period of 2 years, with the possibility of extension, will pursue investments in non-performing loans and unlikely-to-pay mainly guaranteed by underlying real estate and with a unit price of up to 50 million euro.
Illimity and Apollo have agreed on both equal investments and equal governance rights. The JV envisages the contribution by Illimity of approximately 231 million euro of gross nominal value (“Gross Book Value”) of loans previously purchased by illimity and representing part of the current investment portfolio in the Bank's special situation real estate world . It will be Neprix, the Illimity Group company created to innovate the management of distressed corporate credit, the exclusive special servicer for investment management.
Finally, the JV will see the direct involvement of the teams Special Situations Real Estate of illimity and the teams of European Principal Finance of Apollo. The two partners expect to enter into definitive agreements and finalize the transaction in the third quarter of 2021.
