Madison International Realty’s Real Estate Liquidity Fund V L.P – which focuses on investment in the US, UK and mainland Western Europe, closed recently with $825 million in equity commitments. Its target was $750 million.
The firm believes that its unique investment strategy is responsible for attracting the growing group of participants.
It focuses on acquiring stakes in first-rate properties and then providing joint venture equity to existing sponsors who only sell part of it instead of the entire asset.
This strategy has worked well, according to Ronald Dickerman, the founder and president of Madison.
He says that investors want to own an interest in prime commercial property but don’t necessarily want to become involved in a bidding war and pay the highest price.
The background of investors in the fund is diverse. It includes US public and corporate pension funds, insurance companies, endowments, family offices and foundations. Participating institutional investors include Middle Eastern sovereign wealth funds, European institutions, and international investors in Australia and Asia.
Fund V’s portfolio includes the following:
Since Madison typically launches new funds at two-year intervals, it’s possible the next one could start up at the beginning of next year. Madison has said that it is currently focused on the continued investing of Fund V.
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