Doughty expands German portfolio

The purchase of real estate from Grundig makes it three investments in Germany for the $630m Doughty Hanson Real Estate Fund.

Doughty Hanson, through its $630m Doughty Hanson Real Estate Fund, has acquired the former headquarters of Grundig, the German audio-video equipment manufacturer.

The deal, involving 24 properties situated in a single office complex in Fürth, southern Germany, is Doughty’s third in the country. The firm is currently developing an office/retail project in Munich, and has recently bought 1,200 residential units in six properties from Gewobag in Berlin, one of the city’s largest housing companies.

Doughty’s real estate fund, run by 20 professionals, was raised in 1999. It is the largest such vehicle operated by a private equity firm in Europe. The fund, a third of which has been invested, has done 12 deals across the continent with a combined transaction value of more than $1bn. It has acquired the former Milan headquarters of Alcatel. In the same city, it has also invested in a build-to-suit development for L’Oréal Italia.

Like other large private equity partnerships such as The Carlyle Group, which is also active in real estate investment, and The Blackstone Group, Doughty is looking to diversify its product range away from strictly leveraged buyouts. The firm is currently raising a technology venture capital fund, for which it has received commitments worth $275m. A new LBO fund is planned for next year.