Doughty Hanson & Co Real Estate, one of the largest European real estate funds, announced last week that it has sold Jakobsberg Centrum, a major shopping center in Stockholm, to Blenheim Properties, a pan-European real estate investment company based in London, for SEK 865 million (around € 97 million).
The sale of Jakobsberg will generate a 2.3 times return on the Doughty Hanson Real Estate Fund’s cash investment and is the sixth realisation from the Real Estate Fund.
With the proceeds of the sale, investors in Doughty Hanson & Co Real Estate will have received cumulative distributions of more than 70% of cash (US$190 million) invested by the Fund, representing an overall return of 3.2 times on the Fund´s cash investment and a gross IRR of 48%.
Doughty Hanson acquired Jakobsberg in March 2000 and implemented a value enhancement strategy by:
- consolidating a formerly fragmented ownership, after acquiring the nine-property portfolio from four separate vendors;
- initiating a major re-development programme including expansion of the retail area; and
- improving the overall management of the shopping center.
Jakobsberg comprises approximately 67,000 m² of retail, office and residential space with underground and surface parking.
Jakobsberg has around 120 commercial tenants, including popular Swedish retailers such as Hennes & Mauritz, Konsum, KappAhl and Stadium, and 350 residential tenants.
John Howard, Chief Operating Officer of Doughty Hanson & Co Real Estate, said:
“We are delighted to have agreed this transaction with Blenheim Properties. We have initiated significant change at Jakobsberg Centrum over the past four years and believe that now is the right time for new, long-term owners to develop the centre further.”
Jonas Grandér, Head of Nordic Operations for Doughty Hanson Real Estate, added:
“Jakobsberg Centrum has been a successful investment for Doughty Hanson as we were able create value for our investors through improvement in both physical assets and operations. Looking ahead, we hope to continue this investment strategy by acquiring more properties that might benefit from our hands-on active management.”
Igal Ahouvi, Blenheim Properties said:
“Jakobsberg Centrum is a highly attractive shopping center, which we intend to make even more appealing for both visitors and residents while maintaining the existing day-to-day management. The expansion plans for the center offer considerable economic potential and the development will create a unique commercial asset.
Doughty Hanson & Co Real Estate was advised on the sale of by Catella Corporate Finance.