Five Acre Square — which has a potential long-term redevelopment opportunity — was acquired by Madison in 2014 as part of a portfolio of five Houndsditch Estate properties.
With Nuveen as its partner, Madison repositioned the property as an institutional quality asset following extensive refurbishment.
As a result, Madison was able to achieve 100% occupancy with a weighted average lease term of eight-and-a-half years by securing lettings on the previously vacant fourth and fifth floors.
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Alex Lukesch, managing director at Madison International Realty, said: “The sale of this asset follows the completion of our asset management business plan, having repositioned the building and achieved full occupancy with two lettings in the past six months.
“With this and the other sales, we have fully exited our Houndsditch portfolio.
“This transaction has allowed us to crystallise value, while at the same time passing on to Northwood a high-quality core asset that also offers them the opportunity to undertake a significant development in the medium term.”
The PE firm was advised by CBRE and Northwood Investors by JLL.