Madison International Realty, a leading real estate private equity firm, announces that it has acquired with the Luxemburg based investment vehicle MIEPPI Sarl (“MIEPPI”), a c.2.2% equity stake for another institutional investor in Signa Prime Selection AG (“Signa Prime”), a €15.0 billion European real estate company holding – among others – 27 trophy properties and development projects. The total portfolio spans over 2.4 million square meters andincludes, premium office, luxury retail, hotel and residential assets. The terms of the investment are confidential.
This transaction follows the acquisition of a 5.0% stake by MIELI II Sarl (“MIELI II”), also managed by Madison, in July last year. Signa Prime’s shareholder base includes top-tier investors such as the German sovereign wealth fund RAG Stiftung, R+V Insurance Group, the Peugeot Family and others. Signa Holding will remain the majority shareholder.
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. 98% occupancy level and a long average unexpired lease term of almost 20 years. The portfolio also offers attractive embedded upside potential, as many of the rent levels are below current market rates, and the portfolio includes several highly attractive development and redevelopment projects.
Iconic properties within the portfolio include KaDeWe and Upper West Tower in Berlin, Oberpollinger and Alte Akademie in Munich, the Alsterhaus and Alsterarkaden in Hamburg, the Postsparkasse from famous architect Otto Wagner, the Park Hyatt and the Golden Quarter in Vienna, and the Kaufhaus Tyrol in Innsbruck. Among the assets in the recently acquired Kaufhof real estate portfolio are the Galeria Kaufhof Alexanderplatz Berlin, Zeil Frankfurt and Carsch Haus Duesseldorf.
MIELI II and MIEPPI are two separate accounts managed by Madison International Realty on behalf of two independent institutional investors.
Source : Madison International Realty