Global real estate investor Madison International Realty has acquired a 65.99% controlling stake in Polish developer and investor Capital Park from Patron Capital Partners.
Matthias Cordier, managing director of Madison International Realty, said the deal 'provides Madison with a strong strategic partner in one of the most robust markets in Europe'.
Patron will retain a minority stake in the company, with the remaining shares held by management, leading pension funds, investment funds and retail investors.
Founded in 2003, Capital Park is listed on the Warsaw Stock Exchange and has grown into one of Poland's largest development and investment companies. Patron Capital Partners has been involved with the firm since 2005.
The company is currently re-developing the two-hectare former Norblin, Buch Brothers and T. Werner factory in Warsaw's Wola district. The project will realise a mixed-use development with 40,000 m2 of office space and more than 26,000 m2 available for leisure, services, retail and cultural facilities.
Madison is undertaking the acquisition on behalf of the Madison International Real Estate Liquidity Fund VI.
'We have gained a strong partner with whom we will be able to take on new challenges and be more active on the investment market,' said Capital Park Group board member Marcin Jusczyk. 'As of today, our completed projects enjoy over 90% occupancy and we have crossed 35% pre-lease threshold in the project of revitalization of the old Norblin factory, which was an important milestone.
'We are very enthusiastic about the future with the new strategic partner.'
Madison entered the Polish market a year ago when it acquired a 50% share in Belgian developer Ghelamco's €350 mln Warsaw Spire development, one of the biggest transactions in the history of Polish real estate. Warsaw Spire comprises three buildings with a total GLA of 115,000 m2 in the new Daszynskiego roundabout district.
The US firm has appointed Cordier, co-chief investment officer Derek Jacobson and Kimberley Adamek to Capital Park's supervisory board under the terms of the transaction. They will replace Patron's representatives Keith Breslauer, Shane Law and Matthew Utting.
Keith Breslauer, director of Patron Capital Partners, said: 'Capital Park has achieved significant growth over the last 14 years of our partnership, building a prime real estate portfolio of modern Class A office and retail assets.'
EY Real Estate Corporate Finance and law firms Weil, Gotshal & Manges, CMS and Ishikawa Broclawik advised Capital Park and Patron Capital on the transaction. Madison International Realty was represented by Greenberg Traurig, KPMG and GGR Group.
