REAL ESTATE NEWS

The run for Apollo Global Management real estate investment trust appears to be coming to an end. Bloomberg reports that Apollo Commercial Real Estate Finance is planning to dissolve and liquidate its holdings, as cited by The Real Deal.

Stuart Rothstein, chief executive officer of the REIT, admitted to Bloomberg that the move was "in the best interest of the company."

It comes just several months after Apollo Commercial sold a full CRE loan portfolio for $9 billion, representing 99.7 percent of its total loan commitments. At the time, Rothstein said the move was made to "maximize stockholder value," as its shares were trading under book value for too long, according to the CEO.

The plan for the board of directors was to explore all "strategic alternatives," which included complete dissolution. And now, months later, the latter is the reality. Apollo Commercial expected that the move would generate the firm $2.2 billion in total assets, which consisted mostly of cash.

The company also noted that it would keep its $466 million interest in real estate properties, which include the Mayflower Hotel in Washington, D.C.

As for the parent firm, Apollo Global had a total of $192 billion of assets under management as of March. Its real estate strategy, since 2009, involves deploying a "value-driven" approach across its investments in the industry. A recent investment included pouring $1 billion in a joint venture with Realty Income that will hold roughly 500 single-tenant retail properties.

Moreover, it's now targeting the high-growth market of Austin, where it will hold its second headquarters, according to the Financial Times. The market has attracted technology companies, professional services firms and institutional capital thanks to its business-friendly environment. Apollo Global will retain its main headquarters at 9 West 57th Street in Manhattan.

Source: GlobeSt/ALM