Doughty Hanson & Co Real Estate ("Doughty Hanson") announced today that it has completed the sale of its 75% interest in Real Estate Metronom s.r.o. ("Metronom") at a market valuation of €8 million.  Metronom is a strategically located development site in Prague, Czech Republic with planning permission for 30,000 sqm of offices and 20,000 sqm of residential accommodation.

The sale of Metronom is the final exit for Doughty Hanson’s Fund I from a 2001 investment that also included the adjacent 27,000 sqm Office Park Nové Butovice development.  Office Park Nové Butovice was sold in March 2007 to Czech and Slovak Property Fund B.V. for €89.5 million, delivering a 5.4x equity multiple for investors.  The sale of Metronom increases that equity multiple to 6.6x.

Clay Collier, Associate of Doughty Hanson, explained:  "Under Doughty Hanson’s ownership, the vision for Metronom has been transformed.  Following a redesign of the scheme to create a product more appropriate for the market, we secured planning permission in advance of the sale".

Julian Gabriel, Senior Principal and Co-Head of Doughty Hanson, added:  "Nové Butovice was one of the first investments made by Doughty Hanson Real Estate nearly 10 years ago.  The European markets have changed significantly over that period, but the focus of our investment strategy on real estate fundamentals and intensive asset management has remained the same.   We are pleased to have managed this investment through to its full exit and to have returned more than 6 times our investors’ capital".

Doughty Hanson & Co Real Estate ("Doughty Hanson") announced today that it completed the acquisition of Volvo’s research and development headquarters, Sörred 8:4, in Gothenburg, Sweden.  The vendor was Sveafastigheter Sverige I, a Nordic real estate private equity fund.

The high quality 49,000 square metre office property is located in the Torslanda district of Gothenburg and is leased mainly to Volvo Cars.  Torslanda is a global hub for the vehicle safety, electronics and environmental sectors and is the key production site for Volvo Cars and its European operations.

The acquisition is the twelfth investment for Doughty Hanson’s €590 million fund, Doughty Hanson & Co European Real Estate II (the "Fund").  It is the Fund’s second investment in Sweden following the sale of its €315 million Kista Office Portfolio in Stockholm.  Over the last decade, Doughty Hanson’s two real estate funds have completed a total of eleven investments in the Nordic region.

Robert Bongart, Associate responsible for Nordic activities, explained:  "This transaction is an attractive opportunity to acquire a quality asset with strong defensive cash flows.  We are looking forward to working with Volvo Cars and to enhancing the value of the property for the benefit of all stakeholders".

Julian Gabriel, Senior Principal and Co-Head of Doughty Hanson, added: "This acquisition is a good example of Doughty Hanson’s opportunistic approach to real estate.  We have an extensive track record in the Nordic region and a deep understanding of the local markets.  Our ability to identify inherent value at a local level, to complete this transaction at a time of relatively limited liquidity in the market and to actively manage value creation are all important components of our strategy".

Mac 567, the modern new office complex located in the vicinity of Piazzale Maciachini, is the only project in Italy that can boast of BREEAM international certification, developed by BRE (Building Research Establishment).

BREEAM (BRE Environmental Assessment Method) is one of the leading and most widely used international certifications for assessing the environmental sustainability of buildings in Europe.

The complex certification procedure, developed in the United Kingdom, can assess projects from the environmental standpoint much more completely than the traditional energy certifications used at the national level: BREEAM, in fact, considers numerous factors besides energy consumption, such as accessibility by public transport, impact on the land, and the developer’s efforts to minimize the footprint. And following delivery of the building, BREEAM also certifies the possibility of controlling waste and inefficiency in the consumption of water, electric power, etc.

The certification is issued following a complex procedure that includes a specific assessment conducted by a BREEAM assessor: the project is therefore evaluated independently for greater assurance of impartiality in the entire process.

Mac 567 was built by Doughty Hanson, one of the most important real estate developers in Europe, specialized in the design and construction of major office complexes.

ASC Engineering, an engineering and consulting firm, assisted Doughty Hanson in the certification process, interfacing with the BREEAM assessor and providing technical support to optimize the level of certification.

Europa Risorse acted as developer on behalf of Doughty Hanson and supervised all phases of development of the property complex.

The project involves an area of over 32,000 m² bounded by Via Carlo Imbonati, Via Giovanni Bovio, Via Benigno Crespi and Via Roberto Bracco, broken down as follows: Mac 5 (6,448 m²), Mac 6 (13,740 m²) and Mac 7 (12,061 m²). This project finalized the conversion of the area once occupied by Carlo Erba: a historic industrial complex of almost 100,000 m² located at one of the nerve centers of the city, abandoned for years. The total value of the operation was over € 150 million.

There is now a new way of living and experiencing the city of Rome: brought to fruition by the creativity of Armani, the vision of Doughty Hanson - one of the most important names in pan-European real estate - and  the expertise of the developer Europa Risorse. Its name is Cavour220, a development project that represents the evolution of the Serviced Apartments concept that has already become established as a new lifestyle in New York, London and Paris, and accepted as a sound investment opportunity.

The Cavour220 project presents the aesthetic code and style of Armani/Casa in an imposing building offering spacious interiors and meeting the highest criteria of materials and finishes. Sixty two exclusive  apartments have been planned, resulting in a prestigious residence, elegant but unostentatious, designed in a subtle and sophisticated style. This is the first time in Europe that Armani has agreed to take part in a project of such scope and ambition.

The complex is located in one of Rome’s most historic quarters: on the legendary Via Cavour that leads to the Fori Imperiali and the Coliseum. The entire residential block, occupying 12,000 square metres located at  the junction between Via Cavour and Via Giovanni Lanza, is composed of a series of six linked buildings grouped around a large garden. A spacious underground area will offer 36 mechanized underground parking lots for 36 cars.

The individuality of this historic building, with its wealth of different environments and niche areas, with lofty ceilings of various heights, provides the potential for a range of unique architectural solutions. Each  apartment will have its own specific ground plan, which can be finalised and furnished to reflect the taste of the owner on the basis of layouts and finishes proposed by Armani/Casa.

Deserving a special mention, the sheer excellence of the selected materials, and the personal concierge services, guaranteed 24/7, 365 days a year by Quintessentially: from classic requirements like security, care and maintenance of individual apartments to baby sitting, from organising restaurant reservations and travel  arrangements to solving super human challenges such as obtaining last minute tickets for the theatre, major concerts and great sporting occasions.

The capital investment was provided by the Doughty Hanson & Co European Real Estate Fund II in June 2006 in a joint venture with BPD (a group of private investors) and it was built by the developer Europa Risorse. For Doughty Hanson, the private equity firm with a portfolio of investments in industrial groups,  venture capital companies and property developments, this project confirms its serious commitment to Italy. Cavour220 is one of various projects currently nearing completion such as the business park Mac567 in Milan, as well as other property developments currently being undertaken by Doughty Hanson in Europe.

Giorgio Armani, President and CEO of the Armani Group, has remarked: "Tradition. The here and now. Eternal ruins in a scenario of throbbing vitality and dynamic energy. Beauty. That’s Rome for me - the  quintessential Italian lifestyle city in its sweetest, fullest, pulsating and thrilling glory, charming not only the visitor but those who live there now or dream of living there tomorrow. The Cavour 220 project was particularly stimulating, posing the challenge of taking such a unique place, so steeped in history, and bringing it up to date. The scheme was conceived from the desire to transform the ancient buildings of a quarter on the slopes of the Palatine Hill into a prestigious, sophisticated, cutting-edge residential complex.  The design solutions, from intervening in the existing volumes of space and layouts of the courts to the choice of materials and colours for the communal areas and apartments, reflect the dichotomy inherent in a project that seeks to create a comfortable, modern living environment within a historical framework".

"At Cavour220 - observes Edward Bates, Senior Principal at Doughty Hanson - we have merged the serviced apartments experience, already established in New York and London, with the Armani lifestyle.   This is an enterprise with unique characteristics on a European level, one that confirms Doughty Hanson’s commitment and openness to innovative solutions, while responding sympathetically to local requirements. Our skills in providing added value derive from our recognized broad international experience, matched by  our understanding of the specific characteristics of individual markets. We see Italy as a market with huge potential for growth in the real estate sector of residential, office and commercial shopping centre developments, which offer numerous opportunities to make interesting and rewarding investments."

"I can confidently assert - says Antonio Napoleone, President of Europa Risorse - that Europa Risorse has performed its role as developer on this project in exemplary fashion. Following the positive experience of  Orti Antichi we realised that Rome also offered the potential for an exclusive residential project, fulfilling the highest expectations of design and servicing. The meeting with Armani/Casa was extremely fortunate: it immediately gave the development a precise identity, a lifestyle already appreciated throughout the world.  Working with the Armani Group is certainly a stimulating experience in view of their focus on perfection and meticulous attention to every detail, but it could not be otherwise. At the end of the day I am truly satisfied and proud to have achieved another successful conclusion in association with Doughty Hanson."   The first apartments will ready for occupation in the first half of 2010. All commercial aspects will be handled exclusively by the property broker, John Taylor.

Doughty Hanson & Co Real Estate (“Doughty Hanson”) announced today that it completed the acquisition of Old George Mall in Salisbury from the Salisbury Partnership, a joint venture between clients of PRUPIM and Rockspring, in a £60 million transaction.

The 137,000 sq ft shopping centre is situated in a prime location in the centre of Salisbury, an affluent cathedral city with a population catchment in excess of two million and more than three million day visitors per year.  Old George Mall comprises 57 retail units occupied by major national retailers including Bhs, WH Smith, Mothercare and New Look, as well as a 565-space multi-storey car park.  Marks & Spencer is an adjoining anchor.

The acquisition of Old George Mall is the eleventh investment for Doughty Hanson’s €590 million fund, Doughty Hanson & Co European Real Estate II (the “Fund”).  Other Fund investments in the UK include Blythe Valley Park, the premier business park in the Midlands, Kings Hill Business Park in Kent, and Howick Place, a 220,000 sq ft mixed-use development in Victoria, London.

Kevin Grundy, a Principal with Doughty Hanson, commented:

“This is an attractive opportunity consistent with our strategy of focusing on assets with significant value creation potential and defensive characteristics.  Over the last eight years, Doughty Hanson has invested in 12 shopping centres throughout Europe comprising 3 million sq ft and a total acquisition value of €570 million.  We intend to apply our expertise in the retail sector to Old George Mall to enhance the shopping experience for the local community and visitors, and to realise the full potential of the property.”

Doughty Hanson and Terrace Hill JV Secure Planning For Mixed-Use Victoria Scheme

Doughty Hanson & Co Real Estate ("Doughty Hanson"), one of the largest and most successful European real estate fund managers, and Terrace Hill Group PLC ("Terrace Hill" or the "Company") (AIM: THG), a leading UK property development and investment company announce today that they have been granted detailed planning consent for a major new office and residential scheme at 1 Howick Place in Victoria, London. 

The new scheme, which is on the site of the former head office of House of Fraser, will comprise:

• 135,000 sq ft of net internal Grade A offices over eight floors, ranging in size from 14,500 sq ft to 20,000 sq ft;
• 23 private residential apartments offering a range of one, two and three bedroom options on the upper levels with high quality specifications and generous living space; and
• 10 affordable housing units, of one to three bedrooms.

Cushman & Wakefield and CB Richard Ellis have been appointed to act as letting agents on the commercial element of the development and will start marketing for pre-lets early in 2009.  Work is scheduled to start on site in spring 2009, with completion targeted for the summer of 2011.  The scheme will include a number of energy-saving environmental features including Combined Heat and Power and Ground Source Heat Pump systems, designed to maximise energy efficiency and minimise the scheme’s carbon emissions.  These measures will help to achieve a targeted BREEAM rating of ’Excellent’.

Savills has been retained to advise on the residential elements of the scheme.

Kevin Grundy, a Principal with Doughty Hanson, said:"Howick Place will provide office and residential accommodation which delivers value for tenants without compromising on quality. Designed by architects Rolfe Judd, the building is sensitive to its surroundings and has a wide range of energy management systems in place, giving the scheme an excellent environmental standard.  The planning consent allows us to move into the construction phase of development and remain on schedule for a 2011 completion, when we anticipate the short supply of similar competing projects in the area will lead to strong demand for Howick Place."

Philip Leech, chief executive of Terrace Hill, added: "While the current market conditions are tough for everyone it is important to keep a focus on the future growth of our business and to ensure we are still able to deliver the right product, at the right time in the cycle.  Achieving a commercial consent for this development now is, therefore, extremely encouraging and represents an important milestone.  Howick Place meets the aspirations of all interested local groups and the project looks set to make a significant contribution to the progress already made in the redevelopment and regeneration of Victoria.  We are firm believers in the potential of this part of London and are confident that we will attract a range of prestigious and diverse occupiers."

Doughty Hanson and Liberty Property Trust Acquire Blythe Valley Park, Solihull For Up To £161 Million

Doughty Hanson & Co Real Estate and US-based REIT, Liberty Property Trust, have acquired Blythe Valley Park from British Land plc for up to £161 million.

Highlights:

- The premier business park in the Midlands, on 257 acres with dedicated access at Junction 4 of the M42

- 14 office buildings totalling approximately 500,000 sq ft with major occupiers including Centrica, Ove Arup and Vodafone

- Permission granted in 2006 for a second phase of development totalling 800,000 sq ft

- The acquisition is the second joint venture between Doughty Hanson & Co Real Estate and Liberty Property Trust, after the 535,000 sq ft Kings Hill business park in Kent

- Doughty Hanson & Co European Real Estate Fund II has committed £58 million of equity to the acquisition and further development of the project. This is the third investment in the UK by Fund II. In addition to Blythe Valley Park and Kings Hill, the Fund has also invested in Howick Place, a mixed-use office and residential redevelopment in London SW1 in joint venture with Terrace Hill Group plc

- Liberty Property Trust has committed £14.5 million of equity to the acquisition and further development of the project. Blythe Valley Park is a significant strategic step forward in the continuing expansion of Liberty’s UK development and asset management business

- Blythe Valley Park is a partnership with Solihull Metropolitan Borough Council.

Kevin Grundy, Principal responsible for the UK market for Doughty Hanson & Co Real Estate, said: “We are pleased to expand our joint venture with Liberty Property Trust to include Blythe Valley Park, a premier business park with a strong presence in the Birmingham area. Blythe Valley Park offers an attractive mix of value enhancement opportunities and future development potential within an established, prominent location.”

Andrew Blevins, Managing Director, Liberty Property Trust UK, said: “Opportunities such as Blythe Valley Park don’t come around often. It made all the sense in the world to team up with Doughty Hanson once again and to leverage Liberty’s business park expertise for the acquisition, management and future development of the park.”

Fund II has committed to eight investments representing €262.3 million of equity or 44.5% of the Fund; the six investments completed to date are:

- a portfolio of 19 commercial buildings at Kings Hill, Kent;

- two residential development joint ventures in Italy - in Rome and in Brescia;

- a portfolio of six office buildings in the Kista sub-market of Stockholm;

- Howick Place, London SW1 in joint venture with Terrace Hill Group plc; and

- Blythe Valley Park.

Doughty Hanson & Co European Real Estate Fund II is targeting additional investment and development opportunities in France, the Germanic Region, Italy, the Nordic Region, Spain and the UK.     

Doughty Hanson Appoints Sustainability Expert

Appointment strengthens Doughty Hanson’s commitment to sustainable business practises within the firm and its portfolio.

Doughty Hanson & Co, one of the largest independent private equity firms in Europe, has today announced the appointment of Adam Black who will have responsibility for addressing sustainability matters within the firm and, in particular, for advising portfolio companies on environmental, social and governance (ESG) issues to enhance the value of those investments.

Stephen Marquardt of Doughty Hanson said today:  "It is clear that a company’s ability to sustain returns over the long term is in part dependent upon its adherence to strong governance, sound environmental stewardship and social responsibility.  We have long recognised this at Doughty Hanson and it has been a key investment consideration for some time.  The appointment of Adam extends this commitment and allows us to work with management teams more extensively and effectively to implement the sustainability factors that will help to create value for the long term."

Toulouse site represents the Firm’s first French real estate acquisition

Doughty Hanson & Co European Real Estate Completes 43,700m² Business Park Development Site Investment in France.

DoughtyHanson & Co European Real Estate ("Doughty Hanson"), one of thelargest and most successful European real estate fund managers,announces that it has completed the acquisition of a 12 hectare lightindustrial site on the outskirts of Toulouse in South Western France. The investment, by Doughty Hanson & Co European Real Estate FundII, is the firm’s first real estate acquisition in France.

Thesite, which has been acquired from Sun Microsystems, will beredeveloped into a high quality business park.  The five-yearredevelopment, which is part of Doughty Hanson’s Real Estate Solutionsprogramme, will comprise the refurbishment of an existing 18,700 squaremetre light industrial building, as well as the construction of 25,000square metres of new office space.  The site is located to the west ofToulouse city centre in the Basso Cambo area, close to the ring roadand ten minutes from the City’s international airport.

10-year lease signed for Uferstadt Business & Science Campus

Doughty Hanson & Co Real Estate ("Doughty Hanson"), one of the largest and most successful European real estate fund managers, announces that it has signed a ten year lease for 9,000 square metres of office space in its Uferstadt Business & Science Campus ("Uferstadt") in Fürth, Germany.  Following this agreement, Uferstadt will be 92% occupied.

Uferstadt, which was acquired by Doughty Hanson from Grundig AG in 2001, is a high quality urban office location situated between Fürth and Nuremberg.  It comprises nine separate buildings offering approximately 65,000 square metres of modern office space.  Since acquisition, Uferstadt has been substantially refurbished and is currently leased by a range of tenants including Lauer-Fischer, ARAG, Atos Origin, SellbyTell, Computec Media, Ratiopharm and Fraunhofer Gesellschaft.

The new tenant, the German subsidiary of a global IT services company, will relocate 550 employees to Uferstadt in mid-November 2008.  Uferstadt offers tenants competitively priced quality office space in green surroundings in the heart of the thriving metropolitan area of Nuremberg.  The site also provides excellent transport links to Central Nuremberg and surrounding areas.

Julian Gabriel, a Principal with Doughty Hanson & Co Real Estate, commented: "Securing this lease is a major achievement which brings Uferstadt to near full occupancy and marks a further success for Doughty Hanson’s Real Estate Solutions programme, the aim of which is to deliver value-enhancing real estate solutions to major corporations and governments throughout Europe.  Uferstadt is a clear example of our ability to successfully identify prime real estate sites in Europe, with the potential for substantial redevelopment, and to create high quality business locations which meet the exacting requirements of tenants."