UK property fund manager Doughty Hanson has agreed to sell its office portfolio in the Kista district of Stockholm to a property fund managed by Norway's DnB NOR Bank for SEK 2.9 bn (about EUR 315 mln). The sale was the first divestment carried out by the fund Doughty Hanson & Co Real Estate II.

UK property fund manager Doughty Hanson has agreed to sell its office portfolio in the Kista district of Stockholm to a property fund managed by Norway's DnB NOR Bank for SEK 2.9 bn (about EUR 315 mln). The sale was the first divestment carried out by the fund Doughty Hanson & Co Real Estate II.

Doughty Hanson acquired the portfolio of three high-quality office properties in June 2006. The portfolio comprises approximately 120,000 m2 and is let to more than 50 tenants, including the Swedish Defence Research Agency, Ericsson, Tele2, Fujitsu and Baxter Medical.

Doughty Hanson said it had added considerable value to the portfolio through a programme of active asset management before the sale. This programme included increasing rental income through renegotiation of almost 40,000 m2 or 33% of the portfolio; increasing the average unexpired lease term; and making substantial investment in the assets.

Nils Styf, 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 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.'

Catella Corporate Finance acted for Doughty Hanson in the transaction.