Illimity, Apollo to invest up to EUR 500 mln in Italy

The JV, which will have an initial investment period of 2 years, with an option to extend, will pursue investments in NPL and UTP loans mainly secured by real estate assets and with a single price of up to EUR 50 million. The JV, which will have illimity and Apollo as 50:50 investors and with equal governance rights, also provides for the contribution by illimity of approximately EUR 231 million of gross nominal value (‘Gross Book Value’ or ‘GBV’) of loans previously purchased by illimity, which is representative of part of the current real estate investment portfolio situation of the bank. The JV will see the direct involvement of illimity's Special Situations Real Estate teams and Apollo's European Principal Finance teams.  

The JV has selected Neprix, a company of the illimity Group set up to innovate the management of distressed corporate credit, as sole special servicer for the management of the investments.  The transaction will be structured, and definitive agreements entered into, following the review of appropriate structuring considerations and subject to the satisfaction of certain customary conditions.  

The definitive agreements are expected to be entered into, and the transaction is expected to be completed, within the third quarter of 2021.