Doughty Hanson & Co Real Estate (DHCRE) has acquired Howick Place, London SW1 in a joint venture with Terrace Hill Group plc.
The property was acquired from House of Fraser Stores Limited as part of the DHCRE Solutions for Corporates programme. House of Fraser currently uses the property as their head office building, pending the re-development of the site by the joint venture as a mixed-use office and residential scheme. The estimated value of the completed re-development is expected to be €249 million (£180 mln.).
Doughty Hanson & Co European Real Estate Fund II is investing 37.5 million (£25.2 million) of equity. This is the fifth investment by Fund II and the second in the UK. The Fund's other UK investment is the successful Kings Hill Business Park, held in joint venture with Liberty Property Trust.
Kevin Grundy, Principal responsible for the UK market, Doughty Hanson & Co European Real Estate, said: "Howick Place is an attractive re-development opportunity in a strategic location that will provide a high-quality office and residential scheme to the Victoria market. We are pleased to be working together with Terrace Hill to realise the full potential of this asset."
Philip Leech, Group Managing Director, Terrace Hill Group plc, said: "This is an exciting acquisition for Terrace Hill in the fast-growing Victoria office and residential market which should generate significant returns for the joint venture. We are looking forward to working with Doughty Hanson on both Howick Place and other development opportunities in the future."
Source: Doughty Hanson & Co