Illimity, Apollo to form JV to invest in real estate-backed bad loans in Italy

MILAN (Reuters) – Italian challenger bank Illimity and US fund Apollo Capital Management will form a joint venture to invest up to 500 million euros ($ 597.40 million) in bad loans backed by real estate assets in Italy they announced on Thursday.

The 50-50 partnership would have an initial investment period of two years, which could be extended, and targets bad and improbable loans with a unit price of up to 50 million euros.

Illimity would contribute to the JV loan of € 231 million gross par.

The deal should be completed in the third quarter. ($ 1 = 0.8370 euros)

Reporting by Andrea Mandalà; Processing of Agnieszka flak