Apollo Global Management Inc. is injecting $1.02 billion into a new joint venture with Starwood Real Estate Income Trust (SREIT). This significant investment will give Apollo a 41.5% stake in a venture that will own approximately 120 of SREIT’s affordable housing properties across the United States.

The transaction is a crucial move for SREIT, which has faced challenges in providing liquidity to its investors. The substantial proceeds from this deal will be used by SREIT to pay down a portion of its credit facility.

This infusion of capital and the subsequent debt reduction are described as a "critical step" aimed at improving SREIT's overall liquidity and ultimately enhancing returns for its shareholders. The partnership signals a strategic move by Apollo into the affordable housing sector.