Madison International Realty’s city-focused real estate fund has acquired a 50% stake in the €350m Warsaw Spire tower from local developer Ghelamco Poland.
Madison International Real Estate Liquidity Fund VI will own an equal share in the 220-metre high Polish asset alongside the Ghelamco GP12 fund.
The building, which is Central Europe’s tallest office building, has 49 floors and comprises 64,500sqm of office space. The asset is over 95% let.
Jeroen van der Toolen, a managing director for Ghelamco’s CEE region, said: “We are happy that our partner and new co-owner of the building is now Madison International Realty, an American company building its portfolio with the best real estate developments in the world.”
The Warsaw Spire acquisition is one of Poland’s largest office real estate transactions in recent times.
Derek Jacobson, co-chief investment officer at Madison International Realty, said: “The Polish market is set for outperformance and we see this one-of-a-kind asset as well placed to take advantage of that trend.”
Madison said the investment is in line with its strategy for Fund VI which raised $1.24bn in 2016.
Ronald Dickerman, Madison’s founder and president, said at the time that market volatility had created opportunities.
He said the strategy targeted ownership stakes in prime commercial properties and portfolios in the capital cities of the US, the UK and Western Europe.
Madison’s previous deals include buying into Oxford Properties’ Paternoster Square in London and buying the Sony Center in Berlin for around €1.1bn also with Oxford Properties.
The investment manager also bought a portfolio of four German shopping centres in a joint venture with Hamburg-based asset manager Redos.
