Apollo Global Management is in advanced talks with L&T Finance Holdings Ltd to acquire real estate loans worth a total of $1bn, said people with knowledge of the matter. The L&T Group company is looking to pivot toward the retail segment by pruning its infrastructure and real estate exposure, they said.
The deal, pegged at $1 billion, will also will help L&T get cash upfront instead of through staggered payments, allowing it to deleverage its balance sheet, while the private equity group gets a portfolio of real estate assets with some first-loss protection as well as building a relationship with the engineering giant.
The transaction is expected to get finalised in a few weeks and will be carried out via a newly floated alternative investment fund (AIF) structure and will be similar to Apollo’s deal with Piramal Capital & Housing Finance, part of NSE -3.60 %, said the people cited above.
Read more: The Economic Times
