Madison International Grows Footprint in Poland

The company has acquired a majority interest in Capital Park SA, a major investor and developer that trades on the Warsaw stock exchange.
Derek Jacobson, Co-Chief Investment Officer, Madison International Realty
Derek Jacobson, Co-Chief Investment Officer, Madison International Realty

Madison International Realty LLC is expanding its platform in Poland with the planned acquisition of a controlling interest in Capital Park SA from Patron Capital Partners. Capital Park is one of the leading development and investment companies in Poland, where it is redeveloping the former Norblin factory in Warsaw into a flagship mixed-use complex.

Patron will retain a minority stake with the remaining shares held by management, leading pension funds, investment funds and retail investors.

Capital Park has operated in the Polish real estate market since 2003. A year later, it began its relationship with Patron. Capital Park has traded on the Warsaw Stock Exchange since Dec. 13, 2013.

The transaction will give New York-based Madison a strong and significant local platform to expand its Polish investments. In May 2018, Madison acquired a 50 percent interest in the Warsaw Spire, an iconic office tower in Poland for approximately $423 million from Ghelamco, which retained the remaining 50 percent stake. Both investments are being made on behalf of the Madison International Real Estate Liquidity Fund VI. Rising 721 feet at its main tower, Warsaw Spire is the tallest office building in Central Europe.

“Capital Park marks our second acquisition in Poland, where we see great potential. Poland has a strong economy, offering solid market fundamentals and a robust premium compared to other core European markets,” Derek Jacobson, Madison International Realty’s co-chief investment officer, said in a prepared statement.

Matthias Cordier, Managing Director, Madison International Realty
Matthias Cordier, Managing Director, Madison International Realty

“This transaction fits wells with our distinct strategy of investing selectively in listed property companies with strong sourcing opportunities in growth markets and superior management teams,” Matthias Cordier, Madison managing director, added in prepared remarks. “We are very pleased to be working with Capital Park, which has a quality portfolio of prime assets.”

Jan Motz, founder & president of the Capital Park Group, thanked Patron for providing Capital Park with the support needed to build a prime real estate portfolio of modern Class A office and retail assets, including the Eurocentrum Office Complex and Royal Wilanow and the repositioning of the former Norblin factory. Motz also looked forward to the new partnership with Madison.

Keith Breslauer, Patron founder & managing director, said the firm looks forward to continue its work with Capital Park and alongside Madison as they deliver value “to investors through opportunistic investments in the UK and Western Europe. We continue to see opportunities for value through the CEE and will consider such deals accordingly.”

EY Real Estate Corporate Finance advised Capital Park and Patron Capital on the transaction. Greenberg Traurig, KPMG and GGR Group represented Madison.

More European deals

In January, Madison entered into an agreement to acquire and consolidate around 409,000 square feet in Bjørvika, an infill development in Oslo, Norway, which marks the country’s largest urban project. Moreover, the firm entered into an unconditional SPA to acquire Munch Brygge, an apartment building in Oslo.

Madison has also been disposing European assets. As part of a joint venture with Peakside Capital AG, Madison sold the shares for the office property of Frankfurt Airport Center in November for $190 million to a partnership between Godewind Immobilien AG and ERWE Immobilien AG.

Images courtesy of Madison International Realty LLC