ING Real Estate Investment Management (ING REIM) has confirmed that it has completed the acquisition of the 128 commercial properties being sold by Abbey.
An ING REIM-led syndicate paid £1.2bn (€1.74bn) for the Scottish Mutual and one of the Scottish Provident portfolios that Abbey put on the market through CBRE.
ING will contribute EUR277m in equity finance to the purchase.
· The 6.5m sq ft portfolio breaks down as:
· 40% offices;
· 25% retail;
· 15% retail warehouse;
· 14% industrial;
· 3% leisure;
· and 3% other/mixed.
It has a rent roll of £75m pa.
ING said the portfolio will be divided between various separate account clients – existing and to be established funds of ING.
Its UK flagship fund ING Lionbrook will purchase £255m (€370m) of properties.
ING, advised by King Sturge, beat off rival bids from Prudential with the Royal Bank of Scotland and a consortium comprising Tom Hunter, Nick Leslau, REIT Asset Management and Apollo Real Estate Advisers.
ING REIM chief executive Robert Houston said: “With very strong demand for UK commercial property in an evolving market, we are delighted to have secured this acquisition as a portfolio of this magnitude and quality is unlikely to be available again in the near future.
“Since property yields in the UK have firmed over the last 12 months and further yield compression is expected, we are confident that we have acquired top quality assets for our clients and investors.”
References: EGi News 19/08/05
