Madison International Realty, a New York based investment company, announced that it has acquired a 50 percent ownership stake in The Houndsditch Estate in the City of London from TIAA Henderson Real Estate (TH Real Estate) on behalf of its Central London Office Fund, laying the groundwork for a new joint venture partnership between the two firms.
With a total value of ($315 million, the 326,000 s/f portfolio comprises five properties – Cutlers Court (115-116 Houndsditch), 117-119 Houndsditch, 120 Houndsditch, Cutlers Exchange (123 Houndsditch) and 133 Houndsditch – situated on a 1.75-acre freehold island site in the City of London.
The site was acquired in two stages during 2006 and 2009 by TH Real Estate including the freehold interest of half of the estate from the Cutler’s Company late last year. Henderson acquired the long leasehold interests in November 2009 for $53.7 million.
Currently 95 percent leased, the estate is near the transport hub of Liverpool Street, where a new Crossrail terminus will be added in 2017 to the existing rail, underground and bus stations.
TH Real Estate currently manages circa £1.5 billion of London offices, comprising over 30 properties across the main sub markets of London and, following the transaction, will become 50:50 joint partners with Madison for the entirety of the Houndsditch portfolio. TH Real Estate will continue to manage the portfolio on behalf of the JV.
Derek Jacobson, Managing Director at Madison International Realty, said: “We are excited to be partnering alongside TH Real Estate in the ownership of this high quality and extremely well-located office portfolio in Central London. This transaction is directly in line with our investment strategy of acquiring ownership stakes in core, quality real estate located in prime locationsthrough the injection of equity into existing joint venture and partnership structures.”
Nick Deacon, Director of Central London Offices at TH Real Estate, added: “The creation of this joint venture with Madison is consistent with our strategy to enter into joint ventures alongside partners across a range of sectors. We are excited to enter into a new partnership with such a reputable firm and look forward to working collaboratively together to create further value from the estate.”