Doughty Hanson has sold the development rights to a shopping center in the Liljeholmen district of Stockholm to Citycon, the Finnish retail property investment company.
The sale price for the development rights to the center, which will extend to 25,000 square meters when built, is SEK 570 million (€62 million; $79 million).
The deal is expected to complete next month.
In addition to the retail space, the scheme will accommodate 6,000 square meters of residential property.
Doughty Hanson’s real estate arm, which invests separately from the main Doughty Hanson private equity business, has been on a selling spree recently to realize investments from the Doughty Hanson & Co European Real Estate I fund. It has sold 12 out of 21 properties across eight European countries.
The most recent disposal was the Handelsblatt Headquarters in Dusseldorf, Germany, which Doughty Hanson sold to European real estate manager, IXIS AEW Europe, for more than €40 million.
Thus far, investors have received cumulative distributions of more than 143 percent of cash invested by Fund I, representing an overall return of 3.1 times and a gross internal rate of return of 41 percent.
In July Doughty Hanson closed its second fund with commitments of €560 million ($716 million).
Investors in the second fund are from Europe, Australia, the United States, Canada and the Middle East and include existing limited partners in Doughty Hanson’s first European Real Estate Fund as well as new institutions.
Doughty Hanson exits Stockholm retail scheme
The British private equity real estate firm is offloading the rights to develop a shopping center in Sweden’s capital as it continues its sales spree.
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