LONDON—Private equity firm Madison International Realty hasacquired a 35.4% stake in St Stephen's Green Shopping Centre, Dublin, from Irish Life Assurance plc for €61m or US$66 million. Following the transaction, Irish Life will retain a 37.6% holding in the shopping center; the balance will be held by a private third-party investor.

Originally built in 1988, St Stephen's Green is located in the heart of the city's retail district at the top of Dublin's Grafton Street retail corridor. A report from Cushman & Wakefield last month put Grafton Street at the top of the list globally for year-over-year rent growth.

The 250,000-square-foot, three-story retail property features a tenant roster of both local and international retail brands including TJ Maxx and Dunnes Stores. The shopping center also includes a 1,200-space car park, the largest in the city.

"The acquisition of St Stephen's Green is illustrative not only of our confidence in the improving Dublin retail market, but also in the potential to add value by working together with Irish Life in repositioning the center," says Alex Lukesch, director of European investment at Madison. "This transaction is a good fit demonstrating our strategy of allowing global real estate investors to partially monetize the value of their ownership stakes in prime properties and portfolios."

Also in the retail sector, Madison in September of 2014?acquired Schage Eiendom's 50% stake in High Street Shopping, the owner of €180 million worth of retail assets including Norway's oldest department store. The deal was made in consultation with Søylen Property, the majority shareholder and managers of Promenaden Property, in which Madison holds a 30% stake.

At St Stephen's Green, a number of value- and performance-enhancing asset management initiatives have already been identified.

The transaction illustrates Madison's strategy of acquiring partial ownership and joint venture interests in class A properties in prime markets in the US, UK and Western Europe.