Apollo Commercial Real Estate Finance, Inc. Completes $190M Of New Investments Including The Acquisition Of A Minority Participation In KBC Bank Deutschland AG

Apollo Commercial Real Estate Finance, Inc. (the “Company” or “ARI”) ARI today announced the Company closed a $15 million subordinate loan and deployed $29.3 million of equity for the acquisition of commercial mortgage backed securities (“CMBS”) with an aggregate purchase price of $146.3 million. In addition, ARI, together with other investors, including affiliates of Apollo Global Management, LLC APO, completed an investment in an entity that acquired a minority participation in KBC Bank Deutschland AG (“KBCD”), the German subsidiary of Belgian KBC Group NV (the “KBCD Transaction”). Year-to-date, ARI has committed to invest over $754 million of equity into $1.06 billion of commercial real estate debt transactions, including the KBCD Transaction. Subordinate Loan In August, ARI closed a $15 million fixed-rate subordinate loan secured by a top-tier ski resort located in Montana. ARI's loan has a six-year term and an appraised loan-to-value of approximately 59%. The subordinate loan has been underwritten to generate an internal rate of return (“IRR”)(1) of approximately 15%. CMBS From August 1 through September 30, 2014, ARI deployed $29.3 million of equity for the acquisition of CMBS with an aggregate purchase price of $146.3 million. ARI financed the CMBS utilizing $117.1 million of borrowings under the Company's master repurchase agreement with Deutsche Bank AG. The CMBS have a weighted average life of 2.9 years and have been underwritten to generate an IRR(1) of approximately 18%. KBCD Transaction On September 30, 2014, ARI, together with other investors, completed an investment in an entity that acquired a minority participation in KBCD. ARI invested approximately $39.5 million (€30.7 million) at closing. As of December 31, 2013, KBCD had total assets of €2,187 million. Following the closing of the transaction, KBCD was renamed Bremer Kreditbank AG and the bank will operate under the name BKB Bank.