Apollo Management has pounced on $2.8bn in property loans held by Credit Suisse for properties held in Germany, France, Denmark and Sweden. The private equity firm will pay just $1.2bn for its trouble. The Wall Street Journal is reporting that the bank had already written off the loans, and could stand to profit from the deal, as it includes and equity stake in Apollo. The loans were for apartment buildings in Germany and hotels.
“We’re starting to see loans in the marketplace at more realistic prices,” said Paul Fuhrman, an executive at private-equity firm Colony Capital LLC, which has been buying distressed-loan portfolios. “We are definitely seeing the banks loosen up.”