Doughty Hanson sells Swedish office portfolio

The London-based firm has made its first realization from its second real estate fund, selling offices in the Kista region of Stockholm for €315 million.

Doughty Hanson & Co Real Estate is selling its office portfolio in Kista, Stockholm to DnB NOR Eiendomsfond I, a property fund managed by DnB NOR Markets, the largest financial services group in Norway, for SEK 2,920 million (€315 million, $460 million). 

The sale is the first realisation from Doughty Hanson & Co Real Estate II, which was launched in the third quarter of 2005 and had a first close in November of that year on 166.5 million. The fund held its final close in December 2006 with commitments of €590 million.

The portfolio comprises approximately 120,000 square meters and is let to more than 50 tenants.  Major tenants include the Swedish Defence Research Agency, Ericsson, Tele2, Fujitsu and Baxter Medical.

During its time holding the property, Doughty Hanson says it has increased rental income through renegotiation of almost 40,000 square meters, or 33 percent of the portfolio.

Doughty’s Fund II has so far committed to 10 investments representing €291.3 million of equity, or 49% of the Fund, with a portfolio value in excess of €1 billion, according to the firm. Other acquisitions of the fund have included a portfolio of 19 commercial buildings in Kent, UK; two residential development joint ventures in Italy; a 50 percent share in Spanish residential developer Aranco Group; and two light industrial and office developments in France.