U.S. real estate investment firm Madison International Realty's affiliate has bought an equity stake in Signa Prime Selection, a European real estate portfolio worth 12.5 billion euros ($14 billion).

The portfolio includes KaDeWe Berlin, Oberpollinger and Alte Akademie in Munich, covering an area of 2.4 square meters, including luxury retail, department stores, office, hotel and residential assets.

Madison's Luxemburg-based unit, MIELI II, bought the 5 percent stake in Signa Prime’s portfolio and development projects, as well as the 60 asset Kaufhof real estate portfolio, from majority owner Signa Holding.

More so, about 80 percent of the portfolio is located in Germany, with 18 percent in Austria and 2 percent in Italy. The Benko Family via Signa Holding will remain the majority shareholder.