Frankfurt, 4 September 2017 − Apollo Global Management LLC, (together with its consolidated subsidiaries, Apollo; NYSE: APO), in cooperation with the Silverton Group (Silverton) has acquired 17 properties in the „TechnologiePark Köln“ for the Apollo European Principal Finance III Fund (EPF III). The transaction involves a combined share deal and loan sale. The purchase price was in the lower three-digit million Euro range.
The transaction included the shares in the property holding companies as well as the associated financing structure. The property holding companies, previously owned by a Family Office, hold 17 office and commercial properties, including a hotel and conference centre, with a total lettable area of some 123,000 sq m. The occupancy rate is currently around 67%.
Silverton, which facilitated the acquisition on the property side, is taking over responsibility for asset management and will oversee the planned refurbishment works on the properties.
This is Silverton’s first project as part of a strategic partnership with Apollo EPF. It marks another milestone in the implementation of its value-add strategy in the real estate sector.
Stefan Dölker, Managing Partner of Silverton, comments on the plans for the TPK: “Because of its complex ownership and financing structures, the ‚TechnologiePark Köln‘ has built up a considerable refurbishment backlog in recent years. We intend to rectify this quickly, by carrying out extensive refurbishment works and a partial revitalisation of the park. We are also planning a district development, with a modern office and café/restaurant concept, in the core area of the park.“
Dominik Jais, partner of Apollo EPF, added: „We are very pleased to be working with Silverton on this exciting project to revitalise the Cologne ‚TechnologiePark‘. The fund managed by Apollo will be making a significant amount of capital available to support the planned works in our first joint project.“
In addition to their close partnership for the acquisition of the TPK, Silverton and the Apollo-managed fund intend to work closely together in the value-add area, with Silverton being responsible for sourcing and asset management.