ING Real Estate has announced the launch of the ING European Infrastructure Fund. Open to institutions with a minimum of €10 million to invest, the €1 billion fund is targeting a balanced portfolio of European assets, with an IRR of at least 10%.
The fund will invest in a wide spectrum of infrastructure assets, leveraging the wealth of client relationships within the ING network and supported by the fund management expertise of ING Real Estate. The fund is currently being seeded with assets, both from within the pool of infrastructure investments held by ING and from new opportunities being pursued by the fund. Recent acquisitions include two high profile seed assets:
- 24.9% of the total share capital in Q7, an offshore wind farm project on the Dutch continental shelf
- a 29% share in Appia consortium, the new owner of Welcome Break Group, a leading operator of motorway service stations
Commenting on the new Fund, head of the fund's management team, Richard Games, said: "Our infrastructure fund offer is in direct response to market demand. The stability of returns, strong cash flow content and natural inflation hedge, give significant benefits to an investment portfolio. Given the volatility of the current market, Infrastructure assets with their low correlation to the economic cycle and other asset classes become very appealing to investors."
"Our extensive on the ground network and long standing relationships with infrastructure developers and operators, gives us a major competitive advantage in our ability to access off-market deals and give added value to investors.
"We believe we are uniquely positioned to deliver a well-balanced portfolio of assets and we are very excited to be coming to market with such a strong proposition," concluded Games.
Source: ING Real Estate