Madison International Realty is investing up to €50m via Cairn Real Estate’s specialist Dutch logistics vehicle to buy a stake in a 30-asset portfolio.
The real estate private equity firm said it has initially invested €22.5m in the Gateway Fund, an investment that will increase to €50m over the coming 18 months to give Madison a ”significant stake in the portfolio” which has a 99.3% occupancy rate.
Madison said approximately 90% of the portfolio by value is situated in the Netherlands and the remaining properties are located in Germany.
Alex Lukesch, managing director at Madison International Realty, said: “The logistics sector remains one of our conviction buys and has continued to flourish throughout 2020, with the high levels of rent collection testament to its durability, while COVID-19 has also accelerated the trends that were already in place such as the rise of e-commerce and consumer demand for faster deliveries.
“This transaction is typical of our investment strategy to partner with highly respected local partners and allows us to access Cairn Real Estate’s deep experience and connections within the Dutch logistics market.”
Pieter Akkerman, managing director at Cairn Real Estate, said: “The successful recapitalisation shows that investor demand is also stable and we are proud that we were able to attract a new institutional investor like Madison International Realty to our Gateway Fund. We look forward to working together with Madison on our strategy.”
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