PRESS RELEASE
The Hague • 19 September 2006
ING Real Estate poised for major real estate funds launch
LONDON, 19 September 2006 – In its biggest ever combined launch of real estate funds, ING Real Estate Investment Management (ING REIM) is introducing EUR 4.0 billion in new real estate vehicles including for the first time an infrastructure offering. This is to meet continuing demand from institutional investors. ING REIM’s new funds are: ING Property Fund Central and Eastern Europe ING Real Estate Nordic Property Fund ING Real Estate French Residential Fund ING Infrastructure Fund Healthcare Fund TOTAL Targeted Portfolio size: EUR 1.0 billion EUR 1.0 billion EUR 500 million EUR 1.0 billion EUR 500 million EUR 4.0 billion
Commenting on this major initiative, David Blight, Chief Executive of ING Real Estate Investment Management, said: “Real Estate as an asset class is becoming increasingly sought after as it can provide long and growing income stream as well as the ability for the manager to add value via astute and intense management”. ING REIM estimates global capital flows into real estate jumped 25% to USD 1,000 billion in 2005 from USD 800 billion in 2004. “Higher interest rates around the world are helping to slow the momentum of the market and providing a more stable environment for investment managers to operate in. Limited speculative building and generally falling vacancy rates, accompanied by solid economic growth, should lead to higher rents underpinning real estate’s performance going forward, “continued Blight. Total investment returns from real estate have outperformed both bonds and equities in main European markets over the last five years. Real estate returns in Europe averaged 7.8% over the last five years, according to Investment Property Databank (IPD). Government bonds produced average total returns of 6.2% (JP Morgan Index) and equities 2.7% (MSCI Index) over the same periods. Explaining the new fund offering, Pieter Hendrikse, Chief Executive of ING Real Estate Investment Management Europe, said:
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“Institutional investors are looking for more “value-added” style funds, provided by selective investment in a broader range of diversified markets and real estate sectors. Our three new European vehicles and the upcoming infrastructure and healthcare funds have been tailored to meet this demand. “The new funds are value-added in terms of the absolute investment returns we are targeting -such as with the Central and Eastern European Fund, and because they offer access to markets where quality building stock is in tight supply and specialist local management and acquisition skills are required,” Hendrikse added. In addition to the new fund launches above, ING Real Estate’s subsidiary, ING Real Estate Canada, has recently announced a CAD 2.2 billion (EUR 1.5 billion) public offer for Summit Real Estate Investment Trust (REIT) in Canada. Summit REIT is Canada’s largest owner of industrial investment real estate and the fourth largest REIT listed on the Toronto Stock Exchange. ING REIM is one of the world’s biggest real estate investment managers, with EUR 51.5 billion in assets under management as of 30 June 2006. ING Real Estate total business portfolio exceeds EUR 75 billion.
ING Real Estate Investment Management press enquiries Continental Europe: Wieger Sietsma, +31 (0)70 341 8474, wieger.sietsma@ingrealestate.com U.K.: Selina Sasse, +44 (0)20 7767 5756, selina.sasse@ingrealestate.co.uk ING Real Estate is an international real estate company active in investment management, development and finance. With a total business portfolio of over EUR 75 billion and offices in 18 countries in Europe, North America, Asia and Australia, ING Real Estate ranks among the world’s strongest real estate companies. ING Real Estate is part of ING Group, a global financial institution of Dutch origin offering banking, insurance and asset management to over 60 million private, corporate and institutional clients in more than 50 countries.
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