Hudson Realty and Apollo buy big property loan portfolio

NEW YORK (Reuters) - Real estate fund manager Hudson Realty Capital LLC and a fund managed by Apollo Global Management LLC APO.N said on Tuesday that they purchased a portfolio of non-performing loans on nearly 300 commercial real estate properties from United Community Banks Inc UCBI.O.

The loans have a balance of about $200 million. The companies did not disclose the purchase price or the discount on the price they paid for the loans.

The portfolio includes loans on properties in several states, including Georgia, Tennessee, North Carolina, Florida and Wyoming, and covers office, apartments, multifamily, retail, land and special-use properties.

“This acquisition is closely aligned with one of Apollo’s real estate strategies to pursue opportunistic investments involving operationally complex assets in stable and improving markets nationwide,” said Coburn Packard, a partner at Apollo, which has assets of about $113 billion of private equity, credit and real estate under management.

In addition to the debt purchased from the Blairsville, Georgia-based bank, the deal also includes the purchase of additional debt on an Atlanta-area industrial complex whose loan was part of a commercial mortgage-backed securities trust.

Under the deal, Hudson Realty will manage the portfolio and work to resolve the property loans during the next several years, while also managing the properties.

Hudson Realty, which has more than $2 billion in assets under management, is one of the most active U.S. buyers of loan portfolios. It services and manages loans in-house. Its recent acquisitions have involved portfolios in the Mid-Atlantic and the U.S. western region, including California and Colorado.

Reporting by Ilaina Jonas. Editing by Andre Grenon