Doughty Hanson acquires 50% shareholding in Spanish residential developer (ES/UK)

Doughty Hanson & Co Real Estate has announced that it has acquired a 50% interest in Grupo Inmobiliario Aranco, a family-owned Spanish residential developer.

Aranco is a private company and has a strong track record in the development of mid-market apartments in towns across central Spain. Its strategy is to identify and acquire land with planning consent in growing regional towns and to design and build good-value apartments as primary homes.

Aranco was established in 2000 and currently owns eight residential developments. Aranco will deliver over 1,000 units over the next two years in towns such as Guadalajara, Toledo, Ciudad Real and Segovia. Doughty Hanson will fund the growth through Aranco's development pipeline.

This is the Fund's first investment in Spain and an example of Doughty Hanson's ability to provide Real Estate Solutions for companies across Europe by providing capital and real estate expertise to assist vendors and operating businesses achieve their objectives.

Juan Barba Silvela, Principal responsible for the Spanish market for Doughty Hanson & Co Real Estate, said, "We are delighted to have agreed this joint venture with an experienced management team. Aranco is a well-run and proven residential development business, operating in the stable, primary-residence market in Spain, with ongoing projects and a strong pipeline of new developments. We are looking forward to working with the team to develop the projects and to help grow the business. Completing the deal in the current macro-economic climate is testament to Doughty Hanson's capability to provide capital and expertise to businesses which benefit from its Real Estate Solutions."

Javier Arecha Roldán, managing director, Aranco, said, "We are very pleased to have agreed this joint venture with a strong partner. Doughty Hanson provides us with both investment and real estate expertise to help us build upon our established market position."

Fund II has now completed seven investments, representing approximately €245.3 million of equity or 41.6% of the Fund:

  • 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;
  • Blythe Valley Park, a business park in Solihull; and
  • Aranco.

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.

Source: Doughty Hanson

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