Doughty Hanson & Co Real Estate believes its focused development programme in Europe should be able to weather the current global economic crisis as the first project is not due for delivery until next year. The Via Imbonati project in Milan will comprise 32,000 m[sup]2[/sup] of office space and 276 underground parking spaces four km north of the city centre. Julian Gabriel, a senior principal at the European private equity group, says the Milan office sector continues to be undersupplied. 'Development brings risks with it but we focus on high-quality projects in markets and segments where there is undersupply. And, it is not all about delivering product, but satisfying what the tenants want.'

Doughty Hanson & Co Real Estate believes its focused development programme in Europe should be able to weather the current global economic crisis as the first project is not due for delivery until next year. The Via Imbonati project in Milan will comprise 32,000 m2 of office space and 276 underground parking spaces four km north of the city centre. Julian Gabriel, a senior principal at the European private equity group, says the Milan office sector continues to be undersupplied. 'Development brings risks with it but we focus on high-quality projects in markets and segments where there is undersupply. And, it is not all about delivering product, but satisfying what the tenants want.'

Another example of a scheme that meets the needs of the local area is Howick Place, the 20,100 m2 mixed-use urban regeneration project in London. The office and residential project is due for delivery in the undersupplied Victoria submarket in 2011. Howick Place was acquired by Fund II in December 2006 in joint venture with Terrace Hill Group. Development projects typically account for between 25%-50% of Doughty Hanson's real estate portfolio.

Doughty Hanson's EUR 590 mln Fund II, which was raised in 2006, has 40% left to invest after making 11 acquisitions. The firm did not make any acquisitions in 2008, largely due to values across the European real estate market being too high. In January this year the fund acquired the Old George Mall shopping centre in Salisbury in the UK for GPB 60 mln (EUR 67 mln). Asked whether the fund is concentrating on income-producing assets at the moment, Gabriel is unequivocal: 'without a doubt'.