Doughty Hanson Sells Liljeholmsstrand

Doughty Hanson & Co Real Estate, one of the largest and most successful European real estate funds, announces today that it has sold Liljeholmsstrand in Stockholm.

The sale will generate a 2.0 times return on the cash investment by Doughty Hanson Real Estate Fund I, returns US$34 million to investors and represents a gross IRR of 16%. The sale is the eleventh realisation from Doughty Hanson & Co European Real Estate Fund I.

Liljeholmsstrand was acquired by the Fund in December 2000 and consists of 38,000 square metres of high-quality, waterfront office space just outside Stockholm city centre.

In the past 12 months, over 14,000 square metres of office space at Liljeholmsstrand has been leased to high-quality tenants producing an economic vacancy rate of 7%, compared to a vacancy rate for the area of around 20%.

John Howard, Head of Doughty Hanson & Co European Real Estate, said:

“In the past few years we have worked intensively and successfully at Liljeholmsstrand to decrease vacancies, in spite of a difficult leasing market. Now that our leasing strategy has been implemented, we are selling the property after five years of ownership.”

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