FINANCE: Private equity firm Madison International Realty has announced the $825m (£495.6m) final closing of its latest fund.
Madison International Real Estate Liquidity Fund V is the New York-headquartered firm’s third consecutive oversubscribed vehicle.
The vehicle raised the cash from a global investor base including US public pension funds, corporate pensions, insurance companies, endowments, foundations and family offices.
Globally it tapped up European institutions, Middle Eastern sovereign wealth funds and institutional investors in Asia and Australia.
The group, which specialises in acquiring partial ownership and joint venture interests in class-A properties and portfolios in primary markets in the US, UK and Western Europe, has already deployed 40% of its capital commitments.
The firm also provides joint venture equity to owners, sponsors and investors who are seeking to monetise existing equity positions, restructure balance sheets, or to replace existing capital partners.
Some of the $340m from closed investments has been used to buy a stake in Canary Wharf majority shareholder Songbird Estates and purchase New Century House in Dublin, Ireland.
It has also purchased the Statoil Office Complex in Oslo, Norway; One California Plaza, a 42-story, class-A office tower in Los Angeles; and the Saks Fifth Avenue shop in Union Square in San Francisco.
Madison founder and president Ronald Dickerman said: “We are very pleased with the robust and broad support we received from investors in the US and around the world who continue to find our unique, direct secondary investment strategy into class-A assets both differentiated and compelling.
“Madison V is our third consecutive fund to be oversubscribed and our success in this latest capital raising demonstrates our continued ability to source, underwrite and execute on investments which deliver an asymmetric risk/return in the prime real estate space.
“By utilising our well established product sourcing channels, we have already identified a pipeline of attractive investment opportunities and we anticipate that we will be able to maintain this dynamic pace of activity for the remainder of the year.”
bridget.o’connell@estatesgazette.com
