Doughty Hanson exits Italian development for €380m

Doughty has revealed details of a sale from its first European fund in a busy few days for the firm, which announced its maiden sale from follow-on vehicle Doughty Hanson European Real Estate Fund II last week.

Doughty Hanson has sold the Maciachini Center in Milan out of its first fund for a total of €380 million ($558 million) to Milareal Sarl, a Luxembourg-based investment vehicle, and Via Imbonati Srl, an Italian property developer.

Doughty acquired the Milan site for Doughty Hanson & Co European Real Estate Fund I in 2003 and developed the scheme through a phased programme involving speculatively constructed and build-to-suit buildings under the firm’s Real Estate Solutions programme. It comprises approximately 95,000 square meters of new buildings for offices, retail shops, bars, restaurants and cafes, a fitness centre and secured parking for 1,300 cars. The fund worked with Italian partner BPD Property Development to develop it.

John Howard, head of real estate, said: “We have attracted first-class, international tenants to Maciachini as part of our Real Estate Solutions programme and significantly leased the entire first three phases of the development.”

Many of the first fund’s investments have involved Real Estate Solutions for corporates such as L'Oréal Italia.

Doughty Hanson & Co European Real Estate Fund I started investing in 2000. The firm is now onto its second fund Doughty Hanson European Real Estate Fund II, which had its first close in November 2005 when it raised €166.5 million. It held a final close in December 2006 on €590 million. Just a few days ago the firm announced the first realization from its second fund – the sale of offices in the Kista region of Stockholm for €315 million.