FRANKFURT Germany's TAG Immobilien (TEGG.DE) agreed to sell the bulk of its commercial real estate business to Apollo Global Management (APO.N) in a deal worth 297 million euros ($408 million) as it seeks to focus on residential properties.
Apollo European Principal Finance Fund II, a fund affiliated with Apollo, will pay about 130 million euros in cash and assume loans worth 167 million, TAG said on Friday.
TAG said it expected to generate a small book profit from the deal, which is due to close in the second quarter. It said it was keeping a 20 percent stake in the business, called TAG Gewerbeimmobilien.
($1 = 0.7271 Euros)
(Reporting by Maria Sheahan; Editing by Erica Billingham)