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Apollo Raises Capital for Its Debt Investment Fund

International real estate investor and fund manager Apollo Real Estate Advisors has raised additional capital for its debt investment fund, Apollo Real Estate Finance Corp.

Apollo increased overall capital for AREFIN's investment program to $930 million from $621 million through the formation of AREFIN Co-Investment Corp., with the additional funds providing the ability to make larger investments, the firm said.

Formed in 2006, AREFIN originates loans for development, redevelopment and repositioning and invests in whole loans, B-notes and mezzanine loans.

"The continuing credit crisis has created increased opportunity for us as both a buyer and originator of debt," said Apollo partner Bradford Wildauer, who oversees the firm's U.S. debt investments. "We've experienced an increase in the number of opportunities presented to us with more attractive returns and greater ability to structure terms that meet our lending criteria."

Mr. Wildauer added that ACC, the new vehicle, was formed to accommodate the increased deal flow and to handle loan commitments up to $250 million.

"In managing AREFIN, we felt it was prudent to limit loan commitments and retained investment amounts for a single transaction. The new vehicle gives us the ability and the flexibility to handle large portfolio transactions."

Earlier this year, AREFIN and M&T Bank provided a $163.5 million floating-rate debt package to Taconic Partners and Square Mile Capital for the $172 million purchase of 375 Pearl St., a 1.2 million-square-foot office building known as the Verizon Building in Manhattan. Apollo arranged for M&T Bank to provide $110 million in senior debt financing. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/