Illimity and Apollo form JV to invest in bad loans secured by real estate in Italy



MILAN (to Reuters). Italian bidder bank Illimity and US fund Apollo Capital Management intend to set up a joint venture to invest up to € 500 million ($ 597.40 million) in problem loans backed by real estate in Italy, they said Thursday.

The 50-50 partnership will have an initial investment period of two years, which can be extended, and will target problem and unlikely loans with a flat price of up to 50 million euros.

Illimity will contribute € 231 million in JV loans at gross par value.

The transaction is expected to be completed by the third quarter ($ 1 = 0.8370 euros).

Reporting by Andrea Mandala; Editing by Agnieszka Flack


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