It has come to the knowledge that Apollo Management is on the verge of bringing forth (launching) an Asia Pacific property fund with a likely $500m to $1bn under management. What is prime reason behind this approach? Apollo Management is all set to aim at distressed real estate in the region. There are other developments as well. It has also come to the knowledge that the fund will be operated from Hong Kong at the behest of a team headed by Grant Kelley, ex-CEO of Colony Capital Asia.
What are the other responsibilities of Mr. Kelley then? Mr Kelley will adapt Apollo’s US strategy of gaining control of assets at a fraction of nominal value by means of obtaining large positions in the debt of over-leveraged property companies to the far trickier landscape of Asia, where Mr Kelley has lived for much of his career. However, in this context, Leon Black, head and found of Apollo Management deserves special mentions. Leon Black has been gazing at real estate markets for months and has launched quite a few initiatives in recent days. These include a real estate private equity fund and a mortgage real estate investment trust in the realm of United States of America. In the initial days the task of leading these efforts was being dealt with by Joseph Azrack, formerly the president of Citi Property Investors.
Nevertheless, this is not all. Apollo is also engaged in launching its Asia Pacific fund and there can’t be more opportune time since property markets in Asia, led by Hong Kong and China, are booming. Grant Kelley, even though, is trying to focus on submissive markets like Japan, Korea and Australia, the fund contrives to launch real estate investment trusts in comparatively stronger markets of China and India.
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