REAL ESTATE NEWS

Madison International Realty and Warburg Pincus are teaming up to form an investment partnership that will target both primary and secondary asset classes.

The new $300 million partnership will look at pouring capital into sectors including cold storage, industrial, data centers, housing, residential and other asset classes.

Madison is mainly known for providing liquidity solutions for properties and portfolios. Right now, the lender said it "possesses robust deal flow," which gives it an advantage, considering the capital constraint that exists in the current CRE landscape. Both Warburg Pincus and Madison believe that secondary real estate asset classes, in particular, present strong value for investment today, noting that the sectors have seen "considerable" growth as they continue to evolve.

Madison will be using its $4 billion Capital Solutions Founders Fund for the investment in the partnership.

"We believe this strategic partnership will allow us to enhance our dynamic liquidity solutions based positioning in the real estate market at exactly the time global investors seek them most," José Arredondo, principal of Warburg, said in a statement.

"Warburg Pincus recognizes the strength of our secondaries sourcing platform, the differentiation of our liquidity solutions-focused investment strategy, and Madison's access to compelling real estate opportunities in this capital constrained environment."

Madison has poured more than $117 billion across real estate, capital solutions, private equity and over 1,000 companies. The New York-based firm manages $85 billion in assets, currently.

Source: GlobeSt/ALM