Apollo Global eyes final close for $600m Asia opportunity real estate fund

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Image from MahaNakhon

New York-based private equity firm Apollo Global Management is eyeing a final closing for its Asia opportunity real estate fund by this summer – after it made the investment in the tallest skyscraper in Thailand, according to a report in PERE.

Apollo has so far raised about $300 million, which is a half way to its target for the close of the fund, the report added.

It was reported that Apollo had poured $165 million of the fund’s equity into Pace Development (PACE), the developer and owner of MahaNakhon Tower in Bangkok.  PACE’s filing cited Goldman Sachs Investment Holding (Asia) also invested additional $70 million in the same deal.

The investment will be primarily used for the development and completion of MahaNakhon Tower, which is expected to be valued at about $500 million.

The project includes the Bangkok Edition Hotel and the MahaNakhon Retail Cube.

MahaNakhon Tower is the largest outlay of Apollo’s Asia real estate vehicle, led by chief executive Philip Mints. The team also comprises of Tim Grady, former real estate head of Merrill Lynch Asia, and a team of real estate professionals from Venator Real Estate Capital Partners, acquired by Apollo last year.

Venator was manager of the Trophy Property Development Fund, a $1 billion, China-focused development vehicle which required rescuing after its previous manager ran into difficulties. Since turning that around, the firm has been busy raising and deploying capital from Apollo’s Asian property fund.

MahaNakhon is the sixth investment for the vehicle. Last year, it invested in Noida-based realty firm Logix Group, recording its first real estate investment in India.

Also read:

Goldman, Apollo Asia to Invest $235m in tallest Thai building

Apollo-led buy of Anglo American’s Australian coal is off

India: Apollo Global invests $60m in realty player Logix Group