Global alternative asset manager Apollo Global Management, Llc has invested Rs.400 crore in Noida-based realty firm Logix Group, through the structured debt route, in what would be the New York-headquartered investor’s first real estate transaction in India.
The money has been put into the holding company of Logix, which will be used for last-mile funding to complete the construction of four ongoing residential developments and a commercial office project in Noida.
The investment has been made from the new Asia fund that Apollo Global is currently raising to deploy capital in India, China and south-east Asia.
Apollo acquired Citi Property Investors, the real estate investment division of Citigroup Inc., in November 2010, resulting in the acquisition of the former’s real estate assets in India. In May 2015, Apollo Global appointed Nipun Sahni, former managing director, real estate private equity at Merrill Lynch, to head real estate investments in the country, with a new mandate to invest in real estate projects across asset classes. Apart from real estate, Apollo Global also does special situation funding and private equity here.
“This facility helps us achieve financial closure on all the group’s ongoing developments and will enable us to maximize the value of our portfolio of office and retail assets. As a result, we will deliver possession of approximately 8,400 homes to customers over the next 12 to 18 months,” said Shakti Nath, chairman and managing director, Logix Group.
Apart from making fresh investments, Apollo Global, is also responsible to exit the various investments made by Citi Property Ventures.
Apollo exited a Rs.70 crore investment, earlier made by Citi Property Ventures, in Logix Cyber Park, an office development in Noida in September 2015. It has also exited other investments in projects of Ahuja Constructions, Gera Developments Pvt. Ltd and BPTP Ltd.
“We are delighted to partner with Logix which has built several landmark projects in Noida and look forward to working closely with them on their next phase of growth,” said Apollo Asia Real Estate’s India head Philip Mintz.
Private equity funds invested about $954 million in real estate projects from January to June this year, compared to $1.66 billion in the same period in 2015, witnessing a sharp fall of 42%, according to data by investment tracker VCCEdge and Mint research.