Doughty Hanson in talks to sell Spanish malls

Private equity firm Doughty Hanson is reportedly selling its Plaza Eboli shopping centre in Pinto (Madrid) and El Rosal mall in Ponferrada (León) in two separate transactions.

According to a news report by Spanish paper Expansion, the Spanish REIT Lar has tabled an €85 mln offer for El Rosal, while Plaza Eboli is close to being sold to US investor HIG for around €30 mln.

Totalling €115 mln, the disposals would represent a €5 mln loss on the price paid by Doughty Hanson for the two malls in 2011.

Doughty Hanson paid Sonae Sierra €120 mln for the malls four years ago.

Plaza Eboli is a neighbourhood mall located in Pinto, one of the main towns in the southern Madrid metropolitan area, while El Rosal is a regional shopping centre located in Ponferrada, a town in the western province of Leon in north-west Spain.

Plaza Eboli was completed in 2005 and occupies a commercial area of over 31,000 m2. El Rosal was completed in 2007 and has a gross lettable area of over 50,000 m2. Both centres have a diversified tenant mix and occupy strong positions in their respective catchment areas.

Following the death of co-founder and majority shareholder Nigel Doughty in February 2012, Doughty Hanson decided to exit real estate in order to focus on its core business of private equity. The Group has entered into a management agreement with Invesco Real Estate for part of its Doughty Hanson European Real Estate business.