Madison International Completes Acquisition of Capital Park Stake

The deal for the controlling stake in the Polish investment company gives New York City-based Madison International a platform to expand in Poland’s commercial real estate market.
Rendering of the Norblin redevelopment project. Image courtesy of Madison International Realty LLC

Two months after announcing its plan to acquire the controlling 65.99 percent stake in Capital Park SA, a Polish investment company, Madison International Realty LLC has closed the deal with Patron Capital Partners. As a result, the New York-based firm now holds a significant platform for expansion in Poland.

Capital Park has operated in the Polish real estate market since 2003 and has become one of country’s leading development and investment companies. The firm began its affiliation with Patron Capital Partners, a pan-European institutional investor focused on property-backed instruments, in 2005. Patron will retain a minority stake with the remaining shares held by management, leading pension funds, investment funds and retail investors.

The closing of the Capital Park deal gives Madison International a strong local partner in one of Europe’s most robust markets, according to Matthias Cordier, Madison managing director.

Capital Park is redeveloping the former Norblin, Buch Brothers and T. Werner factory in Warsaw’s Wola district into a mixed-use complex. The district will have more than a dozen buildings totaling more than 710,400 square feet. The development will have about 430,550 square feet of office space and nearly 280,000 square feet of space for leisure, services, retail and cultural facilities. The revitalized Norblin site is already more than 35 percent leased.

EY Real Estate Corporate Finance and law firms Weil, Gotshal & Manges, CMS and Ishikawa Broclawik advised Captal Park and Patron Capital on the transaction. Madison International was represented by Greenberg Traurig, KPMG and GGR Group.

Madison’s European Deals

Madison International, which also has offices in London and Frankfort, has been active in Poland since May 2018. The firm acquired a 50 percent interest in the Warsaw Spire, an iconic office tower in Poland for approximately $432 million from Ghelamco, which retained the remaining 50 percent stake.

In January, Madison International entered into an agreement to acquire and consolidate about 409,000 square feet in an infill development in Oslo, Norway. The firm also entered into an unconditional SPA to acquire Munch Brygge, an Oslo apartment building.