Liquidity-Driven Investment Opportunities: Mayfair House
In February 2008, Madison International Realty is presented with the opportunity to buy an additional equity position in the partnership that owns the Mayfair House—a 10-story, trophy-quality office building located in the Mayfair submarket of London’s West End. The pricing for this acquisition would be at a discounted price to par value and an attractive cost basis. In this case, students are presented with information on the UK real estate market, the terms of the partnership agreement, and an investment spreadsheet in order to determine how much Madison should pay for this interest and what conditions in the partnership agreement might impact the valuation.
Case id: 111701
Supplemental Material: Teaching Note, Excel Spreadsheets