Doughty Hanson sells Kista office portfolio (SE)

Doughty Hanson & Co Real Estate has agreed to sell its office portfolio in Kista, Stockholm to DnB NOR Eiendomsfond I AS, a property fund managed by DnB NOR Bank ASA, DnB NOR Markets, the largest financial services group in Norway, for SEK 2,920 mln. (approximately €315 mln.). The sale is the first realization from Doughty Hanson & Co Real Estate II.

Doughty Hanson acquired the portfolio of three high-quality office properties in the Kista area of Stockholm in June 2006. The portfolio comprises approximately 120,000 m² and is let to more than 50 tenants. Major tenants include the Swedish Defence Research Agency (Totalförsvarets Forskningsinstitut - FOI), Ericsson, Tele2, Fujitsu and Baxter Medical.

Doughty Hanson has added considerable value to the portfolio through a programme of active asset management, including: increasing rental income through renegotiation of almost 40,000 m² or 33% of the portfolio; increasing the average unexpired lease term across the portfolio; and making substantial investment in the portfolio.

Nils Styf, Principal, responsible for the Nordic activities of Doughty Hanson & Co European Real Estate, said: "The properties comprising our Kista office portfolio represent high-quality assets with a strong tenant base in an attractive sub-market. Having successfully completed many asset management initiatives and created significant value, the portfolio is perfectly positioned for DnB NOR Eiendomsfond I AS to continue with a longer-term asset management strategy and to capitalise on the excellent fundamentals of the Kista market. As evidenced by our achievements to date, Kista is a dynamic market with real opportunities for growth and value enhancement."

He added: "We are actively reviewing other investment opportunities in Sweden and across the Nordic region, which remains one of our core investment markets."

Doughty Hanson & Co Real Estate was advised on the sale by Catella Corporate Finance.

Source: College Hill Associates Ltd

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