Realty Income Corporation and Apollo announced that Apollo-managed funds and affiliates intend to provide a $1-billion investment to Realty Income to acquire a 49% interest in a new joint venture entity that is expected to own a diversified portfolio of single-tenant retail properties subject to long-term net leases. Realty Income will continue to manage the portfolio, which includes approximately 500 retail assets.
“We expect this partnership will serve as a template for a multi-billion-dollar, programmatic co-investing relationship in the U.S.,” said Sumit Roy, Realty Income’s president and CEO. “Our size, scale, and longstanding commitment to providing dependable monthly dividends to investors make this a natural fit with Apollo’s insurance capital.”
The JV represents a cornerstone component of the net lease REIT’s private capital initiative, which is designed to diversify its sources of capital and complement its access to the public equity markets. The deal is expected to close March 31.
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