LONDON—Madison International Realty, a New York-based investment company, has acquired a 50% ownership stake in The Houndsditch Estate in the City of London from TIAA Henderson 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 (£200M), the 326,000 sq ft portfolio comprises five properties, and is currently 95% leased.

“We are excited to be partnering alongside (TIAA Henderson) TH Real Estate in the ownership of this high quality and extremely well-located office portfolio in Central London,” said Derek Jacobson, managing director at Madison International. “This transaction is directly in line with our investment strategy of acquiring ownership stakes in core, quality real estate located in prime locations through the injection of equity into existing joint venture and partnership structures.”

The properties, situated on 1.75 acres are:

 * Cutlers Court (115-116 Houndsditch)

* 117-119 Houndsditch

* 120 Houndsditch

* Cutlers Exchange (123 Houndsditch)

* 133 Houndsditch

 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.

The estate is very well-located in a highly sought after area of the Square Mile. It is also set to benefit from its close proximity to the major transport hub of Liverpool Street, where a new Crossrail terminus will be added in 2017 to the existing rail, underground and bus stations.

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.”

TH Real Estate currently manages circa more than $2.3 billion (£1.5B) of London offices, comprising more than 30 properties across the main sub markets of London. 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.