Fund I Sells Finnish Retail Porfolio Properties

Doughty Hanson & Co Real Estate, one of the largest and most successful European real estate funds, announces today that it has sold two assets from its Finnish retail portfolio for €37 million to Citycon, a Finnish property company.

This will generate a 2.9 times return on the cash investment by Doughty Hanson Real Estate Fund I, returns €6 million to investors and represents a gross IRR of 95%. The sale of the two Finnish retail assets, Myyrmanni and Valtari, is the tenth realisation from Doughty Hanson & Co European Real Estate Fund I.

Myyrmanni comprised a 26% ownership in a shopping centre in Helsinki. Doughty Hanson Real Estate Fund I owned two retail units within the centre comprising a total of 10,092 square metres, which were leased to Anttila and Intersport.

Valtari is a small shopping arcade in Kouvola, comprising 7,613 square metres.

The Doughty Hanson & Co Real Estate Fund acquired the portfolio of eight retail assets in Finland in May 2004 from Ilmarinen Mutual Pension Insurance Company, the largest ever cross-border real estate deal in the country. The Fund has now disposed of three out of the eight assets in the Finnish retail portfolio and returned 31% of the equity invested.

Julian Gabriel, principal of Doughty Hanson & Co European Real Estate, said:
“We are pleased to have concluded this transaction. We always anticipated selling Myyrmanni to Citycon, which owns the remaining share of the shopping centre, and Valtari was seen as a small, non-core asset which we packaged together with the other asset."

Doughty Hanson Real Estate Fund I will continue to implement its value-added and disposal programme over the next 12-18 months for the remaining assets in the Finnish retail portfolio.

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