Doughty Hanson to exit real estate sector in major strategic rethink

UK private equity group Doughty Hanson plans to wind down its real estate activities as part of a major review of its business.

The London-based independent firm, which has been undergoing a restructuring since the death of one of its co-founders in February last year, said it will focus exclusively on its core private equity business.

The move is the result of a review of the overall business conducted by Dick Hanson, who resumed his role as head of private equity and executive chairman following the death of co-founder and majority shareholder Nigel Doughty.

'No future funds will be raised for its real estate or technology ventures businesses,' the company said in a statement. Members of the real estate team will continue to manage Real Estate Fund II as before, it added.

'We have spent considerable time speaking with our investors and reflecting on the future of the business. While we have had notable successes in both real estate and technology ventures, the real heritage of Doughty Hanson lies in its private equity business, where we have an outstanding track record,' said Doughty Hanson CEO Stephen Marquardt.

Last year, the company also abandoned plans to develop the Valdebebas shopping centre project in northeastern Madrid due to delays in the development of the adjacent residential units. The large-scale project, that was in the early stages of design by architects Chapman Taylor, was planned to offer some 140,000 m2 of gross retail space on completion in 2015. The total investment cost for the scheme was estimated at some €500 mln.