Madison International Realty, a leading real estate private equity firm, announces that it has acquired a 46.5% equity stake in European Logistics Investment platform (“ELI”), a ca. €500 million Polish real estate portfolio, from majority owner Redefine Properties Limited, a leading South-African based Real Estate Investment Trust (REIT). The transaction is Madison’s first major logistics acquisition in Europe as it looks to increase its exposure to the asset class.
The platform, co-managed by the 7% minority co-investor Griffin Real Estate, a leading investment manager in CEE, and Panattoni Europe, a market leading European logistic developer, comprises 14 assets totaling around 560,000 sqm thereof 80,000 sqm nearly completed with around 90% pre-leasing and an additional development pipeline of 270,000 sqm to be started once pre-leases are secured. Spread across Poland’s key distribution hubs of Warsaw, Lodz, Cracow, Silesia, Pomerania and Posnania Regions and developed to a high technical specification, the completed properties are around 95% occupied with a blended WALT of over 4 years. As part of the business plan, the parties aim to further grow the portfolio over the next years to create the leading Polish logistic platform.
As part of the transaction, Madison will provide a €150 million commitment to ELI, of which €83.7 million will be used to acquire a 46.5% interest in the existing assets and developments in progress while leaving a commitment of €66.3 million to expand the portfolio over the next years. Redefine will match Madison’s commitment of growth capital.
Madison has been invested in the Polish market since May 2018 when it acquired a 50% interest in the iconic Warsaw Spire office tower from Ghelamco. The tower was sold in July 2019 to IMMOFINANZ for €386 million. Last year, Madison also bought a controlling stake in Capital Park SA, a Warsaw-listed real estate investment company with a portfolio comprising 304,000 sqm of leasable space, 77% of which is situated in Warsaw.
Source : Madison International Realty