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NEW YORK CITY – Madison International Realty, a real estateprivate equity firm, has acquired a 46.5 percent equity stake inthe European Logistics and Investment platform (ELI). The stake wasfrom South-African based real estate investment trust RedefineProperties Limited's €500 million Polish real estate portfolio.

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The investment platform is comprised of 14 assets in total,adding up to 560,000 square meters by European measurements. Andthereof, 80,000 square meters is close to 90 percent pre-leased.There is also an additional development pipeline of 270,000 squaremeters slated to begin once pre-leases are secured. Minorityco-investor of the platform Griffin Real Estate, which has a 7%stake in the portfolio, co-manages the platform.

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As part of the deal, Madison will provide a €150 millioncommitment to the European Logistics and Investment platform, ofwhich €83.7 million will be used to acquire a 46.5% interest in theexisting assets and developments in progress while leaving acommitment of €66.3 million to expand the portfolio over the nextfew years. Redefine will match Madison's commitment to growthcapital.

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"This transaction represents a rare opportunity to enter theEuropean logistics market with a significant investment into anexisting large scale, high-quality portfolio,"Matthias Cordier, managing director at MadisonInternational Realty, said in a prepared statement. "We believe thesuperior market dynamics in the Polish logistics sector present anattractive entry point compared with other European logisticsmarkets as well as asset classes in Poland. We are excited to beworking alongside an established group like Redefine and withpremier asset managers and logistic developers in Griffin RealEstate and Panattoni."

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The completed properties are around 95% occupied and located inPoland's key distribution hubs of Warsaw, Lodz, Cracow, Silesia,Pomerania and Posnania Regions. As part of the business plan, theparties aim to further grow the portfolio over the next years tocreate a leading Polish logistics platform.

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Since May 2018, Madison has been invested in the Polishmarket when it acquired a 50% interest in the iconic Warsaw Spireoffice tower from Ghelamco. The tower was sold in July 2019 toImmofinanz for €386 million. Last year, Madison also bought acontrolling stake in Capital Park SA, a Warsaw-listed real estateinvestment company with a portfolio comprising 304,000 squaremeters of leasable space, 77% of which is situated in Warsaw.

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"With our new joint venture partner Madison, weare able to fast track our ambitious target to build ELI into aleading player in the Polish logistics sector, along with ourmarket-leading Polish retail platform EPP with a GAV of over€2.2billion. Poland continues to be an attractive market with itspositive economic outlook and solid real estate fundamentals" saidAndrew Konig, CEO of Redefine Properties, in a preparedstatement.

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Griffin Real Estate plans to increase its stake as co-investorand will support both Madison and Redefine in executing its growthplans in ELI, according to Nebil Senman, managing partner atGriffin Real Estate. "We believe that the Polish logistic marketswill continue to grow as a key logistics hub for internationale-commerce players but also an increasing number of new productioncompanies. With Madison, we think we have identified the rightpartner for ELI to further capitalize on logistics real estate,"said Maciej Dyjas, managing partner at Griffin Real Estate, in aprepared statement.

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Mariah Brown

Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.