Leon Black’s Apollo Global Management is the preferred bidder to take control of Citi Property Investors, the real estate investment arm of Citigroup.

It would be a major deal for Apollo and greatly increase its global assets. Citi’s property investment arm has a large portfolio of properties globally valued at around $12.5bn.

Apollo currently manages assets in 26 countries in Asia, Europe and the U.S valued at around $3.5bn.

Citi is selling the division in a bid to raise funds.