ING Real Estate Investment Management announces the successful launch and closing of its first value-added fund in Continental Europe, the ING Real Estate Iberian Value Added Fund (the fund), an unlisted closed-end investment vehicle. Initially ING REIM set out to raise €250 million but has exceeded this target and achieved a total commitment of €300 million in equity from investors.
The fund is targeting a return of more than 13% and has duration of seven years with an initial three-year commitment.
Commenting on the successful launch, Pieter Hendrikse, CEO of ING Real Estate Investment Management Europe, said: "This new fund initiates our first move towards our strategy of meeting investors' demand for more value-added products in Europe. We are operating in a diverse marketplace which offers strong opportunities for value-added investing. Investors are increasingly looking to leverage structural and cyclical real estate opportunities to diversify their portfolio mix and to generate higher returns."
The fund's management team in Madrid has created a long-term acquisition and development programme that will enable the portfolio to grow to EUR 1.2 billion. José Antonio Martín-Borregón, Fund Manager ING Real Estate Iberian Value Added Fund added: "The fund's investment strategy is to acquire real estate assets across all property classes in Spain and Portugal. The portfolio will be managed by taking an active approach to asset acquisitions, re-positioning, leasing and disposals. This activity will be delivered by ING Real Estate Investment Management Spain, which has a longstanding track record of success and solid expertise across the region."
This fund is the first in line of new value-added vehicles targeted at various regions and sectors in Continental Europe for this year.
Source: ING Real Estate