Doughty Hanson & Co Real Estate, one of the largest European real estate funds, has announced that it has sold its shares in Havnestad Syd, a prime residential waterfront development in Copenhagen, to its joint venture partner Sjælsø Gruppen A/S, the publicly-quoted Danish project development company.
It will return US$14.6 million to investors and is the ninth realisation from Doughty Hanson & Co European Real Estate Fund I.
The joint venture to develop Havnestad Syd was the first of its kind in Denmark when it was formed in May 2002. The 67,000 m² residential development along the harbour in Copenhagen has been developed in five phases with all of the 740 residential units now sold or contracted for sale.
John Howard, Head of Doughty Hanson & Co European Real Estate, said:
"Havnestad Syd is a pioneering development and with its transformation now nearing completion, the time is right for us to exit the investment. Our joint venture with Sjælsø Gruppen has been a great success, we have established a strong relationship and the joint venture is actively looking at new projects."
Sjælsø Gruppen A/S was responsible for project and construction management for the Havnestad Syd project, with Doughty Hanson responsible for finance and investment structuring. The development and marketing strategy was developed jointly. It is expected that construction of the latter phases of Havnestad Syd will be completed by the end of 2006.
Last year, the Sjælsø Gruppen/Doughty Hanson joint venture sold the Copenhagen Energy headquarters building in Orestad, returning US$12.9 million to investors.
The third project being developed by the joint venture is The Royal Scandinavia porcelain manufacturing site at Frederiksberg in Copenhagen.
On 15 December 2005, Doughty Hanson & Co Real Estate announced that it had acquired a portfolio of 19 commercial buildings at Kings Hill Business Park, Kent (in a joint venture with Liberty Property Trust), the first investment by Doughty Hanson & Co European Real Estate Fund II, which announced a first close in November 2005 with commitments of 166.5 million.
Source: Doughty Hanson