NEW YORK Private equity firm Apollo Global Management APOLO.UL has bought Citigroup Inc's (C.N) real estate investment management group, and will combine it with its own real estate investment unit, the groups said on Friday.
No price was disclosed, although the groups said that the unit, Citi Property Investors, had assets under management of over $3 billion as of June 30.
Apollo is buying the unit through its Apollo Global Real Estate Management group. As of June 30, its real estate business had assets under management of $2.1 billion.
Citigroup, the third-largest U.S. bank by assets, has sold assets, laid off staff and tried to focus the bank on its main businesses, including investment banking and retail banking for affluent customers globally.
The bank is on track to have less than $400 billion of unwanted assets, or 20 percent of total assets, by the end of 2010. Citigroup is still 12 percent owned by the U.S. government, which originally planned to finish selling off the stake by mid-December.
(Reporting by Megan Davies; Editing by Gary Hill)