ING Real Estate has announced the successful launch of the ING Real Estate Italian Retail Fund. The fund, an unlisted semi-open ended investment vehicle, has a target size of €1 billion. It will invest in core and value-added retail properties across Italy, with a particular focus on shopping centers.
At first closing the fund has already had commitments for nearly one-third of the target capital, and the final closing is expected to take place before year end. The fund has an expected internal rate of return of between 10% and 12%. It has already committed to acquire an asset in the north of Italy, and a further pipeline of properties is in the process of being secured.
"Shopping center investment provides the best rental growth prospects when compared with other asset classes. This is key in today's environment of historically low yield levels," said Florencio Beccar, Managing Director of ING Real Estate Investment Management Italy.
Source: ING Real Estate