LONDON—Madison International Realty, a NewYork-based investment company, has acquired a 50% ownership stakein The Houndsditch Estate in the City ofLondon from TIAA Henderson Real Estate onbehalf of its Central London Office Fund, layingthe groundwork for a new joint venture partnership between the twofirms.

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With a total value of $315 million (£200M), the326,000 sq ft portfolio comprises five properties, and is currently95% leased.

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“We are excited to be partnering alongside (TIAA Henderson) THReal Estate in the ownership of this high quality and extremelywell-located office portfolio in Central London,” said DerekJacobson, managing director at Madison International. “Thistransaction is directly in line with our investment strategy ofacquiring ownership stakes in core, quality real estate located inprime locations through the injection of equity into existing jointventure and partnership structures.”

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The properties, situated on 1.75 acres are:

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* Cutlers Court (115-116 Houndsditch)

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* 117-119 Houndsditch

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* 120 Houndsditch

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* Cutlers Exchange (123 Houndsditch)

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* 133 Houndsditch

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The site was acquired in two stages during 2006 and 2009by TH Real Estate including the freehold interest of half of theestate from the Cutler's Company late last year.

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The estate is very well-located in a highly sought after area ofthe Square Mile. It is also set to benefit from its close proximityto the major transport hub of Liverpool Street,where a new Crossrail terminus will be added in2017 to the existing rail, underground and bus stations.

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Nick Deacon, Director of Central London Officesat TH Real Estate, added:

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“The creation of this joint venture with Madison is consistentwith our strategy to enter into joint ventures alongside partnersacross a range of sectors. We are excited to enter into a newpartnership with such a reputable firm and look forward to workingcollaboratively together to create further value from theestate.”

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TH Real Estate currently manages circa more than $2.3 billion(£1.5B) of London offices, comprising more than 30 propertiesacross the main sub markets of London. Following the transaction,will become 50:50 joint partners with Madison for the entirety ofthe Houndsditch portfolio. TH Real Estate will continue to managethe portfolio on behalf of the JV.

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David Phillips

David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.