Real estate private equity firm Madison International Realty has purchased a 5% equity stake in Signa Prime Selection, a European real estate portfolio.
The Luxemburg-based investment vehicle named MIELI II is worth €12.5bn, with 27 properties across luxury retail, department stores, office, residential and alternative asset classes. It totals 2.4 mln m2 and boasts 100% occupancy. Properties include Upper West Tower Berlin, the Alsterhaus Hamburg, the Park Hyatt hotel and Golden Quarter in Vienna.
MIELI II also features a portfolio comprising 60 assets belonging to majority owner Signa Holding, through the Benko family. Assets including Galeria Kaufhof Alexanderplatz Berlin, Zeil Frankfurt and Carsch Haus Dusseldorf.
With the purchase, Madison becomes one of Signa Prime’s top five shareholders, joining fellow investors including RAG Stiftung, R+V Insurance Group, the Peugeot Family with FFP among others.
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 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.´