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Doughty Hanson sells three more Finnish shopping centres for €186m

The UK private equity real estate firm is returning 3.3 times its invested capital three years after it acquired the retail portfolio.

Doughty Hanson has sold three more properties from its Finnish retail portfolio.

The shopping centers, two in Helsinki and one in Oulu, have been sold to ING Real Estate Investment Management for €186 million ($251 million).

Doughty Hanson & Co Real Estate Fund I acquired the properties as part of a portfolio of eight shopping centers in 2004 from Ilmarinen Mutual Pension Insurance Company. At the time, it was the largest ever cross-border real estate transaction in Finland.

In a statement, the London-based firm, whose real estate operations are headed by John Howard, said total returns from the entire Finnish retail portfolio represented a multiple of 3.3 times on the fund’s equity investment and a gross internal rate of return of 55 percent.

The most recent sale brings the total assets sold out of the portfolio to seven properties, leaving just one to be sold: Iso Omena, a 61,000–square-meter property in western Helsinki, which is currently on the market.

Nils Styf, responsible for Nordic investments at Doughty Hanson, said the firm continued to view the Finnish real estate market as an attractive one.