By David Parsley, Mon 22 July 2019
Madison completed the deal via MIELI II, a fund it manages, for an undisclosed price.
Sigma has a €12.5bn European real estate portfolio, comprising 27 properties and development projects, as well as the 60 asset Kaufhof real estate portfolio. The portfolio spans around 26m sq ft and includes luxury retail, department stores, office, hotel, and residential assets.
With this transaction, MIELI II becomes one of Signa’s top five shareholders and further broadens Signa’s current shareholder base, which is primarily German and Austrian including shareholders such as the German sovereign wealth fund RAG Stiftung, R+V Insurance Group, and the Peugeot Family with FFP.
About 80% of the portfolio is located in Germany, with 18% in Austria and 2% in Italy.
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.
Matthias Cordier, managing director at Madison 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 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.”
About Madison International Realty
Madison International Realty (www.madisonint.com) is a leading liquidity provider to real estate investors worldwide. With approximately $3.6 billion AUM, Madison provides joint venture and preferred equity capital for real estate owners and investors that are looking to de-lever their properties; seek an exit strategy; or where existing sponsors seek to sell a portion of their ownership position. 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 only 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.