Apollo Mgt to launch Asia Pacific property fund

US-based private equity firm Apollo Management is launching an Asia Pacific property fund, with an expected $500 million to $1 billion under management, to target distressed real estate sector in the region, says a media report. "

"Kelley intends to focus on markets that are more subdued, such as Japan, Korea and Australia.

Eventually, the fund plans to also launch real estate investment trusts where growth is strong in markets such as China and India," the Financial Times reported.

The daily said that the fund would be run from Hong Kong by a team headed by Grant Kelley, who was chief executive officer of Colony Capital Asia until a year ago.

Kelley would adapt Apollo's US strategy of gaining control of assets at a fraction of face value by acquiring large positions in the debt of over-leveraged property companies, the report noted.

Apollo's founder, Leon Black, has been eyeing real estate markets for months and has recently launched several initiatives, including a real estate private equity fund and a mortgage real estate investment trust in the US.