Doughty Hanson acquires Midlands business park for £161m(2)

The UK firm has partnered with US REIT Liberty Property Trust to acquire the Blythe Valley Park from UK REIT British Land.

Doughty Hanson and US-based REIT, Liberty Property Trust, have acquired Blythe Valley Park from UK REIT British Land for up to £161 million.

The site, on 257 acres with dedicated access to the M42 highway in the West Midlands, contains 14 office buildings with approximately 500,000 sq ft. Some of the current tenants include Centrica, Ove Arup and Vodafone. According to Doughty Hanson, a second phase of development is planned for a 800,000 sq ft addition.

The acquisition is the second joint venture between Doughty Hanson and Liberty Property Trust, after the two worked together to acquire the 535,000 sq ft Kings Hill business park in Kent.

Doughty Hanson & Co European Real Estate Fund II has committed £58 million of equity to the acquisition, including funding for further development of the project.  This investment is the fund’s third in the UK, having already invested in Kings Hill in Howick Place, a mixed-use office and residential redevelopment in Southwest London. That acquisition was made in a joint venture with Terrace Hill Group.

Liberty Property Trust has committed £14.5 million of equity to the acquisition.

Doughty Hanson & Co European Real Estate Fund II has committed to eight investments representing €262.3 million of equity, or 44.5% of the Fund, according to the firm. The fund’s investments outside the UK include two residential development joint ventures in Italy and a portfolio of six office buildings in the Kista sub-market of Stockholm.