March 19 (Reuters) – Realty Income said on Thursday it will get $1 billion from asset manager Apollo Global Management and affiliates for a 49% interest in a new joint venture that is expected to own a portfolio of single-tenant retail properties with long-term net leases.

Such retail properties are popular with investors for their steady income and resilience, as tenants typically cover property costs and often sell essential goods or services.

The deal between Realty Income and Apollo, expected to close on March 31, involves about 500 properties across diversified retail sectors including dollar stores, quick service restaurants, drug stores, grocery and health & fitness.

The commercial real estate investment trust said it will manage the properties and retain the option to buy back Apollo’s stake between the 7th and 15th year, with the price set to cap the asset manager’s annual return at 6.875%.

Goldman Sachs served as the financial advisor to Realty Income, and Wells Fargo did for Apollo.

(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shailesh Kuber)