Doughty Hanson purchases two sites in France

Doughty Hanson, one of Europe's largest real estate fund managers, has agreed to acquire a logistics site in Avrigny, north of Paris, and a light industrial site in Toulouse. The total investment cost to acquire and develop both sites will be EUR 120 mln.
Doughty Hanson's Fund II will invest EUR 17 mln of equity to acquire and develop 24.7 hectares of land in Avrigny. The greenfield site will be developed into a 100,000 m² logistics park and is well-located for the main Paris-Lille motorway and rail connections, which form important logistics routes linking Paris to the UK, Northern and Eastern Europe.

Fund II will also invest EUR 17 mln to acquire and develop 12 hectares of land on the outskirts of Toulouse. The vendor is Sun Microsystems. Fund II will redevelop an existing 18,700 m² light industrial building and develop 25,000 m² of new office space to create a high-quality business park west of Toulouse city centre.

Doughty Hanson's development partner for both investments is Gicram, a privately-owned logistics, light industrial and regional office development specialist with over 30 years' experience across France.

Jean Raphael Racine-Grisoli of Doughty Hanson said: 'We are pleased to have agreed Doughty Hanson's first investments in France. Doughty Hanson has a strong track record across Europe of improving real estate assets and creating value. Combined with Gicram's impressive experience in the French regional market, we are well-positioned to take advantage of these and further opportunities.'

Fund II has now committed to nine investments representing EUR 279.3 mln of equity, or 47% of the fund.

Doughty Hanson established its first real estate fund in 1999 and has since become active in the office, retail, residential and logistics sectors. A pioneer in multi-country real estate investing, it has completed 25 transactions in eight countries, with a portfolio value in excess of EUR 4 bn.