Apollo closes Euro fund.

Apollo Real Estate Advisors has closed its second European Fund, the Apollo European Real Estate Fund II, L.P. for a total of $600 million.

The European Fund II builds on the success of Apollo's International Fund, which was 95% allocated to Europe and 5% to Japan and is now fully invested. The Fund will make investments throughout Europe focusing on corporate dispositions, under-managed portfolios and large single assets, with a total value of some $2.5 billion.

It is currently planned that the new Fund will invest in the region of 40% in the United Kingdom, 40% in Continental Europe, including France, Germany, Italy and Spain and approximately 20% in Central and Eastern Europe, in particular Poland, the Czech Republic and Romania.

The Fund was over-subscribed and includes blue-chip investors from the US, Europe, Middle East and Australia, many of whom have invested with Apollo's previous funds. The Fund includes a Euro denominated tranche for non-US investors.

William Benjamin, managing director of Apollo Real Estate Advisors in Europe said: "Apollo has been active in Europe since 1995, and in that time we have been involved in over 70 transactions. The result of our fund raising reflects the talent and commitment of both our team and our local partners. We are looking forward to performing for our investors."

Over the last twelve months Apollo has been involved in a number of major European deals including the acquisition of a portfolio of 26 shopping centers anchored by Metro for a total consideration in excess of 700 million [euro] and the sale of its holding in Haslemere NV.

In December 2004, Apollo made its first acquisition for the new Fund in joint venture with REIT Asset Management with the purchase of a portfolio of 76 properties from a subsidiary of Bankgesellschaft Berlin.