Apollo funds commit $1.34B to UDR apartment venture with 7%-7.5% repurchase option
UDR keeps one-third, manages the 19 communities for a fee, and can repurchase Apollo's stake after five years at a 7% to 7.5% return.
At a glance
Daily Network reporting shows Apollo funds are committing $1.34 billion for a two-thirds interest in a $2 billion venture holding 19 UDR apartment communities.
UDR keeps the remaining one-third, manages the 19 communities for a fee, and holds an option to repurchase Apollo's interest after five years at a 7% to 7.5% return.
If UDR exercises the option, Apollo's capital is repaid at that 7% to 7.5% band and UDR regains the two-thirds stake.
Daily Network reporting shows Apollo funds are committing $1.34 billion for a two-thirds interest in a $2 billion venture holding 19 UDR apartment communities.
UDR keeps the remaining one-third, manages the 19 communities for a fee, and holds an option to repurchase Apollo's interest after five years at a 7% to 7.5% return. The option is exercisable from the fifth anniversary and sets a price for Apollo's capital.
If UDR exercises the option, Apollo's capital is repaid at that 7% to 7.5% band and UDR regains the two-thirds stake. If UDR does not exercise, Apollo remains a two-thirds owner while UDR keeps the management fee and one-third economic interest.
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