Madison buys 5% stake in €12.5bn Signa portfolio
Madison International Realty has acquired a 5% equity stake in Signa Prime Selection, a €12.5bn (£11.2bn) European real estate portfolio.
The New York-based firm has bought the stake via Luxemburg-based investment vehicle MIELI II Sarl, a fund it manages, from majority owner Signa Holding.
The portfolio comprises 27 properties and development projects, as well as the 60-asset Kaufhof real estate portfolio. The portfolio spans 2.4m sq m and includes luxury retail, department stores, office, hotel and residential assets.
Madison International Realty has acquired a 5% equity stake in Signa Prime Selection, a €12.5bn (£11.2bn) European real estate portfolio.
The New York-based firm has bought the stake via Luxemburg-based investment vehicle MIELI II Sarl, a fund it manages, from majority owner Signa Holding.
The portfolio comprises 27 properties and development projects, as well as the 60-asset Kaufhof real estate portfolio. The portfolio spans 2.4m sq m and includes luxury retail, department stores, office, hotel and residential assets.
With this transaction, MIELI II becomes one of Signa Prime’s top five shareholders. The firm’s current shareholder base is primarily German and Austrian, including top-tier shareholders such as the German sovereign wealth fund RAG Stiftung, R+V Insurance Group and the Peugeot Family with FFP.
Signa Holding will remain the majority shareholder.
Madison will also explore potential opportunities to partner with Signa on future acquisitions both at an asset and company level.
Some 80% of the portfolio is located in Germany, with 18% in Austria and 2% in Italy.
Iconic properties within the portfolio include KaDeWe Berlin (pictured), Oberpollinger and Alte Akademie in Munich, Upper West Tower Berlin, the Alsterhaus Hamburg, the Park Hyatt and Golden Quarter in Vienna, Kaufhaus Tyrol Innsbruck and the Elbtower in Hamburg.
Matthias Cordier, managing director at Madison International Realty, said: “This transaction fits extremely well with Madison’s strategy, allowing us to take an investment in one of the most significant and attractive portfolios in Europe.
“Furthermore, Signa Prime not only comprises a number of extremely high-quality properties which offer long-term, stable cashflows in our core European markets, it also provides great upside potential from rental reversion and a number of opportunities to create value through development and redevelopment.”
The move follows Madison buying a 3.1% stake in Capital & Counties Properties in May.
It now holds around 26.5m shares in the company.
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