By Pierre Bertrand

Vonovia SE on Wednesday said that it will sell a minority common equity participation of its Suedewo portfolio to Apollo Global Management Inc. for 1 billion euros ($1.10 billion)

The transaction values the portfolio at EUR3.3 billion on a debt-free and cash free basis, Vonovia said.

The German real-estate company said it would use the proceeds of the sale for liability management and to cover upcoming debt maturities.

Vonovia said that it will continue to control, operate and consolidate the portfolio of more than 21,000 residential units across the German state of Baden-Wuerttemberg.

The company said that it retains a long-term call-option to repurchase the participation.

The deal is expected closed around May 31, Vonovia said.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

April 26, 2023 01:34 ET (05:34 GMT)

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