ING REIM pulls out of Aussie healthcare fund

ING Real Estate Investment Management (ING REIM) is selling its 60% interest in the company that manages its ING Real Estate Healthcare Fund (IHF) to Australian real estate investment manager APN Property Group. APN will also purchase the 1.4% stake in the fund owned by other ING entities. Financial details were not disclosed. The deal is subject to approval by IHF unit holders.

The transaction is part of ING’s previously stated intention of withdrawing from the Australian property funds management business in a timely and controlled manner.

APN will maintain the current strategic direction of IHF and remain a pure play healthcare property specialist listed on the Australian Securities Exchange.

Commenting on the transaction, Hein Brand, CEO of ING REIM, said: ‘APN is a long-time supporter of IHF and the healthcare property sector as evidenced by its current unit holding in the Fund. APN is currently IHF’s largest single unit holder.’

He continued: ‘We believe that this proposal is in the best interest of unit holders of the fund. This proposal is the next step as we move through our phased withdrawal from the Australian real estate investment management market.’

ING announced in February 2011 that it had finalised the strategic review of its Australian REIM platform and its five ASX-listed real estate funds and implementation had commenced. Various options have been evaluated for each fund with a focus on unlocking the best value for unit holders.

ING REIM is a global real estate investment manager with a total portfolio at 31 March 2011 of EUR 62.4 bn. The bulk of ING REIM's business was sold to CBRE Investors for $940 mln in February this year.