In November 2015 and January 2016, Madison acquired a 8.9% equity interest in an 83-property retail portfolio, HBS Global Properties, a joint venture between the Hudson’s Bay Company (“HBC”) and Simon Property Group (“SPG”). SPG is the largest real estate mall operator in the world and operates retail real estate platforms throughout the globe. The Partnership was formed by HBC in order to monetize its equity in its real estate assets. The US portfolio consists of 42 trophy properties in prime locations including Beverly Hills, Washington, D.C., Atlanta, Las Vegas, Miami and Chicago and each location is occupied by Saks Fifth Avenue or Lord & Taylor. The German portfolio consists of 41 stores in prime main street locations throughout Germany including markets such as Frankfurt, Berlin, and Munich and are occupied by Galeria Kaufhof.
The properties are 100% leased to HBC on a 20-year master lease with a 2% minimum annual rental increase.