FORM 3
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION _____________________
WASHINGTON, D.C. 20549 | OMB APPROVAL |
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INITIAL STATEMENT OF |OMB NUMBER: 3235-0104|
BENEFICIAL OWNERSHIP OF SECURITIES |EXPIRES: |
| SEPTEMBER 30, 1998|
Filed pursuant to Section 16(a) of the |ESTIMATED AVERAGE |
Securities Exchange Act of 1934, |BURDEN HOURS |
Section 17(a) of the Public Utility |PER RESPONSE..... 0.5|
Holding Company Act of 1935 |_____________________|
or Section 30(f) of the Investment
Company Act of 1940
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1. Name and Address of Reporting Person
Scully William A.
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(Last) (First) (Middle)
c/o Apollo Real Estate Management II, L.P.
1301 Avenue of the Americas
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(Street)
New York New York 10019
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(City) (State) (Zip)
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2. Date of Event Requiring Statement (Month/Day/Year)
10/8/98
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3. I.R.S. Identification Number of Reporting Person, if an entity
(voluntary)
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4. Issuer Name and Ticker or Trading Symbol
First Union Real Estate Equity and Mortgage Investments
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5. Relationship of Reporting Person(s) to Issuer (Check all applicable)
(X) Director
( ) 10% Owner
( ) Officer (give title below)
( ) Other (specify title below)
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6. If Amendment, Date of Original (Month/Day/Year)
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7. Individual or Joint/Group Filing (Check Applicable Line)
_X__ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
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TABLE I - NON-DERIVATIVE SECURITIES BENEFICIALLY OWNED
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|1. Title of Security|2. Amount of |3. Ownership |4. Nature of |
| (Instr. 4) | Securities | Form: Direct| Indirect |
| | Beneficially| (D) or | Beneficial |
| | Owned | Indirect (I)| Ownership |
| | (Instr. 4) | (Instr. 5) | (Instr. 5) |
|--------------------|---------------|---------------|--------------------|
No securities beneficially owned. (1)(2)
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TABLE II - DERIVATIVE SECURITIES BENEFICIALLY OWNED
(E.G., PUTS, CALLS, WARRANTS, OPTIONS, CONVERTIBLE SECURITIES)
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1. Title of Derivative Security (Instr. 4)
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2. Date Exercisable and Expiration Date (Month/Day/Year)
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Date Exercisable Expiration Date
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3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)
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Title Amount or Number of Shares
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4. Conversion or Exercise Price of Derivative Security
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5. Ownership Form of Derivative Security: Direct(D) or Indirect(I) (Instr.
5)
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6. Nature of Indirect Beneficial Ownership (Instr. 5)
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EXPLANATION OF RESPONSES:
1. The Reporting Person's beneficial ownership excludes 2,135,987 shares of
Common Stock of First Union Real Estate Equity and Mortgage Investments
(the "Issuer") owned by Apollo Real Estate Investment Fund II, L.P.
("AREIFII"). The general partner of AREIFII is Apollo Real Estate Advisors
II, L.P. ("ARE Advisors II"). The general partner of ARE Advisors II is
Apollo Real Estate Capital Advisors II, Inc. ("ARECAII"). Apollo Real
Estate Management II, L.P. ("AREMII") is the day-to-day manager of AREIFII.
The Reporting Person is a director of the Issuer, an officer of ARECAII and
a limited partner of ARE Advisors II and AREMII.
2. The Reporting Person disclaims beneficial ownership of all securities
owned by AREIFII and any of its affiliates, and this report shall not be
deemed an admission that the Reporting Person is the beneficial owner of,
or has any pecuniary interest in, any such securities for purposes of
Section 16 of the Securities Exchange Act of 1934, as amended, or for any
other purpose.
/s/ William A. Scully October 28, 1998
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** SIGNATURE OF REPORTING PERSON DATE
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** INTENTIONAL MISSTATEMENTS OR OMISSIONS OF FACTS CONSTITUTE FEDERAL
CRIMINAL VIOLATIONS. SEE 18 U.S.C. 1001 AND 15 U.S.C. 78ff(a).
NOTE: FILE THREE COPIES OF THIS FORM, ONE OF WHICH MUST BE MANUALLY
SIGNED. IF SPACE IS INSUFFICIENT, SEE INSTRUCTION 6 FOR PROCEDURE.
POTENTIAL PERSONS WHO ARE TO RESPOND TO THE COLLECTION OF INFORMATION
CONTAINED IN THIS FORM ARE NOT REQUIRED TO RESPOND UNLESS THE FORM
DISPLAYS A CURRENTLY VALID OMB NUMBER.
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