ING REIM acquires Spanish mall for EUR 50 mln

ING Real Estate Management (ING REIM) has announced the acquisition of Ociopia shopping centre in Alicante, Spain for about EUR 50 mln from Spanish developer Grupo Inerzia. ING said the scheme is the seventh income-producing asset in the portfolio of ING Retail Property Partnership Southern Europe.

The two-level, open-air shopping centre in Orihuela has a total gross lettable area of 26,480 m² and comprises 72 units. The ground floor is occupied by fashion anchors Inditex Group and C & A Kids, and household anchor Master Cadena. The upper levels houses a Sabeco supermarket, a gymnasium, a UCC cinema as well as several food court units. Two stand alone units will be built in coming months and are scheduled to open by 2008. There are also 1,200 parking spaces.

The ING Retail Property Partnership Southern Europe has a target size of EUR 1.2 bn to be invested in retail properties in Portugal, Spain and Italy. The fund is 100% committed in 11 investments in the three countries.

Separately, ING REIM announced the closing of its ING Property Fund Central and Eastern Europe. This is an unlisted investment vehicle with an infinite lifetime, a targeted investment volume of EUR 1 bn, and an internal rate of return between 10-11%.

The seed portfolio consists of two properties contributed at initial closing and one committed property for which a binding agreement exists. There are a further five pipeline properties under negotiation. Letters of intent have been entered into for two of these projects. Investments to the value of EUR 400 mln are expected before the end of 2007.

'The Central and Eastern Europe region offers diversified investment potential for real rental growth in combination with yield compression opportunities. The ING Property Fund Central and Eastern Europe gives us access to multiple asset classes, to optimise income return and to enhance value growth through active portfolio and asset management,' Martin Sabelko, managing director of ING REIM Central Europe said in a statement.