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
