Athene Buys $9B CRE Loan Portfolio From Apollo
Athene Holding Ltd. has agreed to acquire Apollo's roughly $9 billion commercial real estate loan portfolio. The entire group contains 99.7 percent of total commitments, which leaves out two pieces of debt, amounting to a combined $146 million, which are both expected to be repaid.
Still, Apollo will keep all the net equity interest in its real estate property holdings, which amounted to $466 million in September 2025.
In justifying the reason behind the CRE sale, the REIT thinks the transaction will benefit shareholders, noting the represents a 23 percent premium from the company's current stock trading levels. Plus, Apollo will get immediate liquidity when the deal closes, continue paying a quarterly dividend and strengthen its balance sheet.
"Like many peers in the sector, ARI's common stock has traded below book value for an extended period and has not fully reflected the intrinsic value of the Company's loan portfolio. At the same time, attractive yield-generating assets such as ARI's are highly valued, in short supply, and continue to attract strong demand from the institutional market," Stuart Rothstein, CEO and president of Apollo, said in a statement.
"This transaction provides certainty of execution through a complete loan portfolio sale to a high-conviction buyer with deep familiarity with the assets, given Athene's aligned position in the capital structure with ARI across nearly 50% of the loans in the portfolio."
With Apollo's board of directors already approving the deal, what's left is getting the green light from the majority of the shareholders. Also, Apollo said it will continue evaluating CRE strategies for the rest of the year, while considering merger and acquisition opportunities.
Apollo expects the portfolio sale to close during the second quarter. Athene got financial representation from Eastdil Secured and legal support from Sidley Austin. Clifford Chance US LLP represented Apollo on the legal front.
Moreover, the New York-based firm anticipates having $1.4 billion of net cash and roughly $1.7 billion of stockholder equity on hand.
Source: GlobeSt/ALM