Madison International Realty has closed its ’liquidity fund’ with $825m of equity.
US public pension funds, Middle Eastern sovereign wealth funds, insurance companies and family offices have backed Madison’s Real Estate Liquidity Fund V.
The fund seeks exposure to properties by buying into existing ownership structures where owners are looking to either deleverage or sell individual stakes.
Around 40% of capital raised has been deployed, the firm said. With Europe’s recovery lagging that of the US, Madison’s latest fund has been notably active on the continent, investing in Oslo, Dublin and, via Songbird Estates, London’s Canary Wharf.
With a preference for existing office and retail, the private equity firm has stuck to a niche strategy of targeting opportunities within the core space, with a preference for prime property in main cities.
In the US, it has bought in LA and San Francisco, buying into One California Plaza tower in LA and Saks Fifth Avenue in San Franscisco’s Union Square.
In Europe, Madison has invested in Dublin’s New Century House office building and the Statoil office complex in Oslo, where it has also invested in the luxury retail sector. Madison founder and president, Ronald Dickerman said the firm has “identified a pipeline of attractive investment opportunities.”
Madison V is the third fund to be oversubscribed.
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