Liberty Property Trust, the US REIT, has paved the way for a business park alliance with UK private equity firm Doughty Hanson with a £100m transaction between the two companies.
Doughty Hanson has agreed to buy an 80% interest in the 700,000 sq ft of commercial space so far developed at the Kings Hill Business Park in Kent.
The tie-up marks the formation of a wider strategic joint venture between the two following a search by Liberty for a UK business park equity and development manager.
The stake, which is occupied by more than 100 tenants, will be injected into Doughty Hanson’s second real estate fund, which was launched last year.
There remains a further 1.25m sq ft of space to be built at the park which, along with 1,390 homes already built, is not included in the agreement.
It is thought, however, that the remaining commercial space will be added to the joint venture with Doughty Hanson as it is built.
References: Property Week 09/09/05 page 11
