June 7 (Bloomberg) -- Deutsche Bank AG arranged a $200 million credit facility for Apollo Global Management LLC to buy U.S. single-family rental homes, according to a person with knowledge of the matter.
The loan will allow Apollo to buy, renovate and rent the properties, said the person, who requested anonymity because the deal hasn’t yet been announced. Apollo, founded in 1990 as a private-equity firm, manages $114 billion of assets and is an investor in Haven Realty Capital LLC, an El Segundo, California-based manager of single-family homes.
The bank line is at least the third by Frankfurt-based Deutsche Bank to money managers who are seeking to take advantage of the recovering housing market following its worst crash since the Great Depression. Private-equity firms have been among the biggest buyers of foreclosed and distressed homes across the U.S. to turn into rentals, helping to turn what has historically been a mom-and-pop business into an institutional asset class.
Deutsche Bank in March led a syndicate of lenders offering Blackstone Group LP, the largest U.S. owner of single-family homes with about 26,000, an expansion of its credit line to $2.1 billion from $600 million to buy houses. It also arranged a $100 million loan for asset manager Five Ten Capital LLC the following month. Renee Calabro, a spokeswoman for the bank, declined to comment on the Apollo credit line, as did Melissa Mandel Kvitko, a spokeswoman for New York-based Apollo at public-relations firm Rubenstein Associates.
Haven managed about 1,000 houses in California, Nevada and Illinois as of March.