JSM Financial has learned of a deal that will see New York headquartered private equity firm Apollo Management LP’s real estate assets more than triple after the firm agreed recently to purchase Citi Property Investors.
At the time of agreement on the deal Citi’s portfolio included 65 investments in 26 countries around the globe with a net asset value of $3.5 billion according to a source with knowledge of the deal.
It is understood that Apollo has signed a letter of intent, and JSM Financial has learned that the deal could take up to three months to conclude.
Citigroup was among the numerous companies to receive a financial bailout from the U.S. government at the height of the global financial crisis in October of 2008 when the U.S. Treasury felt the bank’s rapidly collapsing financial situation would negatively affect global financial markets.
Earlier this month, JSM Financial has been informed, the bank’s Chief Executive Vikram Pandit told a congressional panel that he had already sold of a number of proprietary trading businesses, including the Phibro energy unit, as he intended focusing on trading services for clients. He apparently repeatedly emphasized that Citi was focused on back-to-basics banking for U.S. corporations globally.
JSM Financial research shows that Citi Property Investors currently employs more than 90 professionals and manages around $12.5 billion in gross real estate assets.
