Capital Park SA and Madison International Realty join forces

Madison International Realty (“Madison”), a global real estate investor, has completed the acquisition of a controlling, 65,99% stake in Capital Park SA (“Capital Park” or the “Company”) - Polish, recognized investment companyfrom Patron Capital Partners (“Patron”), the pan-European institutional investor focused on property-backed investments. This transaction provides Madison with a significant and strong local platform from which to expand its Polish investment. 

A number of conditions necessary for the completion of the final sale agreement for the acquisition, including receiving the consent of the President of the Office of Competition and Consumer Protection, have been met. Madison International Realtyhas indirectly purchased 65,99% of shares in the Capital Park Group. Patron Capital Partners has retained a minority stakein the Group with the remaining shares held by management, leading pension funds, investment funds and retail investors.

The closing of our agreement with Capital Park provides Madison with a strong strategic partner in one of the most robust markets in Europe. Madison continues to invest selectively in listed property companies with premier assets in growth markets where we see great potential. We look forward to working with Capital Park on its current portfolio of quality properties and on sourcing future opportunities in Poland, said Matthias Oliver Cordier, Managing Director in Madison International Realty.  

Capital Park is currently progressing the full redevelopment of the two hectare former Norblin, Buch Brothers and T. Werner factory in Warsaw’s Wola district, situated between Prosta, Łucka, and Żelazna streets. A miniature district will appear there, comprised of over a dozen buildings and passages. The renovated site will accommodate over 66,000 sqm of usable area, including 40,000 sqm of office space and more than 26,000 sqm of space designed for leisure, services, retail and culture.

We are pleased that the transaction between our majority shareholders was finalized. All the conditions necessary for completion have been met. We have gained a strong partner, with whom we will be able to take on new challenges and be more active on the investment market. The transaction takes place at a very favorable time for the commercial real estate market in Poland.. As of today, our completed projects enjoy over 90% occupancy, and we have crossed 35% pre-lease threshold in the project of revitalization of the old Norblin factory, which was an important milestone, and we are very very enhtusiastic about the future with the new strategic partner - said Marcin Juszczyk, a board member in the Capital Park Group.

Capital Park has operated in the Polish real estate market since 2003 and has become one of the leading development and investment companies. Capital Park has been listed on the Warsaw Stock Exchange since 13 December 2013. In 2005 the Company started its successful cooperation with Patron Capital Partners, which has continued for 14 years.

Keith Breslauer, Founder and Managing Director of Patron Capital Partners, said: “Capital Park has achieved significant growth over the last 14 years of our partnership, building a prime real estate portfolio of modern class A office and retail assets. Having achieved our investment strategy for Capital Park, we look forward to seeing its continued success with Madison International Realty. Our primary focus is on opportunistic investments in the UK and Europe, but we will always consider opportunities in the CEE and other territories where we believe we can use our experience and expertise to deliver value to our investors.”

Along with the transaction, the composition of the Supervisory Board of the Capital Park company has changed. Representatives of Patron Capital Partners: Keith Breslauer, Shane Law and Matthew Edward Utting submitted their resignations. In their place Madison appointed: Derek Jacobson (Co-Chief Investment Officer, with primary responsibility for the oversight of Madison’s European investment activities including origination, underwriting, and execution of transactions for Madison’s managed funds), Matthias Oliver Cordier ( serves as Managing Director in Madison International Realty GmbH with primary responsibility for the sourcing, underwriting due diligence and execution of investments including limited partnership buyouts, mezzanine investments, equity recapitalizations, and structured equity investments with a focus on Germany, France, the Nordics, Poland and Portugal) and Kimberly Adamek ( oversees the asset and portfolio management, serves as Portfolio Manager in Madison International Realty, with responsibility for the asset management of Madison’s domestic and international investment portfolio).. Katarzyna Ishikawa (nominated by Jan Motz), Anna Frankowska and Jacek Kseń (both independent board members) kept their functions on the Supervisory Board.

EY Real Estate Corporate Finance, law firms: Weil, Gotshal & Manges, CMS and Ishikawa Brocławik advised Capital Park and Patron Capital on the transaction. Madison International Realty was represented by Greenberg Traurig, KPMG and GGR Group.