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
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
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.