MADISON INTERNATIONAL REALTY ACQUIRES STAKE IN €12.5 BILLION SIGNA PRIME PORTFOLIO
Portfolio consists of 27 trophy assets in Germany, Austria and Italy And the Kaufhof portfolio
FRANKFURT and NEW YORK, July 22, 2019 — Madison International Realty, a leading real estate private equity firm, announces that it has acquired with the Luxemburg based investment vehicle MIELI II Sarl (“MIELI II”), a 5.0% equity stake in Signa Prime Selection AG (“Signa Prime”), a €12.5 billion European real estate portfolio comprising 27 trophy properties and development projects, as well as the 60 asset Kaufhof real estate portfolio, from majority owner Signa Holding GmbH. The portfolio spans 2.4 million square meters and includes luxury retail, department stores, office, hotel and residential assets. The terms of the investment are confidential.
With this transaction MIELI II, managed by Madison, becomes one of Signa Prime’s top five shareholders and further broadens Signa Prime’s current shareholder base, which is primarily German and Austrian including top-tier shareholders such as the German sovereign wealth fund RAG Stiftung, R+V Insurance Group, the Peugeot Family with FFP and others. The Benko Family trough SIGNA Holding will remain the majority shareholder In addition to the investment in this portfolio, Madison will explore potential opportunities to partner with Signa on future acquisitions both at an asset and company level.
About 80% of the portfolio is located in Germany, with 18% in Austria and 2% in Italy. The majority comprises fully stabilized core assets which afford excellent cash flow stability due to a c. 100% occupancy level and a long average unexpired lease term of 18 years. The portfolio also offers attractive embedded upside potential, as many of the rent levels are below current market rates, and several highly attractive development and redevelopment projects. Iconic properties within the portfolio include KaDeWe Berlin, 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. Among the 60 assets in the Kaufhof real estate portfolio are the Galeria Kaufhof Alexanderplatz Berlin, Zeil Frankfurt and Carsch Haus Dusseldorf.
Matthias Cordier, Managing Director at Madison International Realty commented on the investment: “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 cash flows 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.”
“Our investment also allows Signa to continue to diversify its investor base. We are impressed with the quality of Signa’s management team and continue to believe in Germany as a core Madison target market,” added Derek Jacobson, Madison International Realty co-Chief Investment Officer.
About Madison International Realty
Madison International Realty (www.madisonint.com) is a leading liquidity provider to real estate investors worldwide. Madison provides equity capital for real estate owners and investors seeking to monetize embedded equity, to replace capital partners seeking an exit and to recapitalize balance sheets. The firm provides equity for recapitalizations, partner buyouts and capital infusions; and acquires joint venture, limited partner and co-investment interests as principals. Madison invests in secondary transactions and focuses solely on existing properties and portfolios in the U.S., U.K., and Western Europe. Madison has offices in New York, London and Frankfurt, Germany, where the firm operates under the name of Madison International Realty GmbH.
Madison International Realty
Michelle Manoff (US) Rubenstein Public Relations
Phone +1 212-805-3051