ING Real Estate Investment Management has launched two new funds: ING Property Fund Central Europe and ING Retail Property Partnership Southern Europe.
The non-listed ING Property Fund Central Europe invests in retail and office properties in the Czech Republic, Hungary and Poland. The starting portfolio of contributed and committed projects totalled €315 million and included properties in each of the target markets. Over the course of the commitment period, the portfolio is expected to grow to €600 million. ING Property Fund Central Europe is leveraged at 60% and aims to achieve an internal rate of return (IRR) of 13.5%. Established on April 29th 2004 to coincide with EU expansion, the fund has a twelve-year life.
Introduced on May 7th 2004, the non-listed ING Retail Property Partnership Southern Europe invests in shopping properties in Italy, Portugal and Spain. Valued at €300 million, the starting portfolio of existing and committed properties included the 35,000 m2 Urbil shopping centre near San Sebastian, Spain, and the 20,6000 m2 Alessandria turnkey project in northern Italy. With a €1-billion target size and 65% leverage, ING Retail Property Partnership Southern Europe aims to achieve an IRR of 13% to 15%. The fund has a seven-year life.
The introductions of the funds demonstrate continued growth in ING Real Estate’s investment-management business. With assets of nearly €40 billion, the firm now manages 31 funds in Asia, Australia, Europe and the United States.
Source: ING Real Estate