Madison acquires stake in Portuguese RE fund

Sonae Sierra will continue to manage the nine asset fund after selling a 25% stake to the New York real estate investment firm.

Madison International Realty has bought a stake in a Portugal-focused real estate fund from Sonae Sierra, the fund's manager, PERE's sister publication, Secondaries Investor, reported today.

The real estate private equity firm acquired a 25 percent stake in Sonae's 2008-vintage €300 million Sierra Portugal Fund. The vehicle focuses on core-plus retail investments in Portugal, according to PERE Research and Analytics.

“The acquisition of a 25 percent stake in the Sierra Portugal Fund is illustrative not only of our confidence in the Portuguese retail market but also our ability to diversify on behalf of our investors, acquiring partial ownership in prime markets in the US, UK and both southern and western Europe,” Derek Jacobson, managing director at Madison, said in the statement.

Lisbon-headquartered Sonae, which still holds a 22.5 percent stake, will continue to manage the fund. The vehicle holds nine operating shopping centres in the country including 8ª Avenida, AlbufeiraShopping, ArrábidaShopping, GaiaShopping, LeiriaShopping, LoureShopping, Centro Comercial Continente de Portimão, RioSul Shopping and SerraShopping.

Other investors in Sierra Portugal Fund include Finnish pension fund Keva and Aberdeen Asset Management, according to PERE data.

It was not clear which fund Madison used to purchase Sonae's stake.

New York-headquartered Madison is seeking $950 million for its Madison International Real Estate Liquidity Fund VI, which launched in March 2015. The fund has received a $100 million commitment from the Teachers’ Retirement System of the State of Illinois (TRS) in February and and undisclosed amount from the West Virginia Investment Management Board.

Madison has over $2 billion in assets under management, according to the statement.