Madison purchases interests in indirect or illiquid ownership structures such as:
- Limited partnerships
- Limited liability companies
- Open and closed ended funds
- Private REITs
- Other joint venture and co-investment interests
Madison purchases these interests from partners seeking liquidity before the natural sale of the underlying real estate. Investors may seek early exits from their investments due to changes in their investment objectives and allocation strategy, delayed asset sales, or unforeseen financial needs requiring increased liquidity.
Because Madison acts as a passive financial investor, we can replace current partners with fresh equity capital while allowing remaining owners and sponsors to maintain full management control of the assets and portfolios.
TRANSACTION SUMMARY: In January, 2013, Madison acquired a 33.4% interest in the holding company that owns the Oslo headquarters of Statoil, a nine-story, 67,070 sqm trophy office building. The building is net leased to Statoil, the Norwegian oil company which is 67.0% owned by the Norwegian government. In June 2013, Madison increased its ownership percentage, acquiring the remaining equity in the property with a Madison sponsored co-investor. As a result of this transaction, the asset was wholly owned by Madison affiliated entities.
TRANSACTION SUMMARY: Madison entered into a strategic, long-term partnership with DDR to recapitalize a 7.0 million square foot portfolio of 52 grocery-anchored properties and power centers. Madison acquired an 80% equity interest in the portfolio from existing limited partners, while DDR retained its 20% interest. The portfolio consists of grocery-anchored centers located in Southeastern markets with growing populations and favorable demographics. Madison’s investment created liquidity for exiting partners, expanded Madison’s footprint in necessity based retail, and allowed DDR to continue its value creation strategy.
Saks Fifth Avenue
Through a series of offers to underlying investors, Madison acquired a 51% limited partnership interest in a class A, free-standing department store, leased long-term to Saks Fifth Avenue, and located in the heart of San Francisco at 384 Post Street in Union Square. The property is part of a portfolio held by a closed-end fund sponsored by Deutsche Asset & Wealth Management, a subsidiary of Deutsche Bank AG. Madison was able to provide existing investors with an exit strategy, giving them the immediate liquidity they were seeking.