Madison International Realty has taken a 50% stake in a London office portfolio from TIAA Henderson Real Estate (TH Real Estate).
The stake in the Houndsditch Estate portfolio, in the City district of the UK capital, was bought by Madison for its Central London Office Fund.
The £200m (€252.1m) portfolio includes five properties clustered in an area near Liverpool Street station.
The companies said the 30,400sqm portfolio is 95% let.
TH Real Estate will continue to manage the portfolio on behalf of the joint venture.
TH Real Estate bought the Houndsditch site in two stages in 2006 and 2009, taking the freehold interest of half of the estate from the Cutler’s Company late last year.
Derek Jacobson, managing director at Madison International Realty, said the transaction was ”directly in line” with its strategy of buying stakes in ”core, quality real estate located in prime locations”.
New York-based Madison, he said, injects equity into existing joint venture and partnership structures.
In April, Madison closed its ‘liquidity fund’ with $825m of equity. US public pension funds, Middle Eastern sovereign wealth funds, insurance companies and family offices backed the Real Estate Liquidity Fund V, which is buying into existing ownership structures where owners are looking to either deleverage or sell individual stakes.
More recently, Madison increased its exposure to Norway, buying stakes in an office asset and a retail company.
