Partners Group has invested in a portfolio of seven US-based assets as part of a restructuring of real estate investment manager Madison Marquette's sole fund, PERE's sister publication, Secondaries Investor, reported Tuesday.
The firm invested $265 million in the restructuring of the 2006-vintage fund, according to a statement. The remaining assets from the $1 billion Madison Marquette Retail Enhancement Fund were moved into a new fund with Madison, which will manage the fund, investing 20 percent of the new vehicle.
“This investment is a great example of the opportunities that can be found in the US secondary market currently due to the number of maturing real estate programs that require resolution,” said Fabian Neuenschwander, senior vice president in Partners' private real estate secondaries team, in the statement. “With quality assets located in major US metropolitan markets, we believe this portfolio still has significant value creation potential and look forward to unlocking the value of these properties in the coming years through proactive asset management.”
Madison Marquette Retail Enhancement Fund focused on value-added investments in North America, according to PERE research. Assets moved into the new vehicle include The Wharf (pictured), a mixed-use waterfront development project in Washington DC, Asbury Park, a New Jersey retail and restaurant waterfront development, and University Place, a shopping mall in North Carolina.
Partners will work with Madison to operate the assets, including on renovation and development plans.
It is understood the new vehicle's duration is shorter than 10 years, though specific terms and details of the restructuring such as pricing were not clear.
Partners invested in the restructuring using capital from various platforms including its €1.95 billion ($2.16 billion) Partners Group Real Estate Secondary 2013 fund.
Madison Marquette was founded in 1990 and manages a portfolio of new development projects and operating assets in urban gateway markets in the US, according to its website. The firm is a subsidiary of the international investment firm Capital Guidance.