ING Real Estate Investment Management has sold the last assets of its Real Estate Office Fund of The Netherlands (REOFN) portfolio to a joint venture of Dutch family offices and Middle Eastern institutional investors. The terms of the deal, expected to close by the end of 2010, were not disclosed.
The properties are 13 office buildings located in prime urban areas throughout The Netherlands, comprising of more than 904,000 square feet of leasable office space and 1,200 parking spaces. Investment manager PingProperties acted on behalf of the consortium of Dutch family offices, and the London-based advisory firm WW Advisors advised the institutional investors from the Middle East.
ING’s REOFN fund was established in 2008 after ING expanded its Dutch Office Fund by taking over a portfolio from Kantrenfonds Nederland (KFN), an independent subsidiary of Dutch insurer ABP. Some of the KFN properties were not “in line with the strategy” of ING’s Dutch Office fund, and as a result were placed in the REOFN fund, which ING said would to hold, rework and sell the assets within three years.
As of January 2010, the REOFN fund had sold 75 percent of its entire portfolio for roughly €500 million, according to news website Europe-re.com
ING REIM is currently in the process of being sold, with the parent company ING appointing Morgan Stanley to help sell the business earlier this month. The platform, which has €66.4 billion of assets under management, has already courted attention from prospective bidders, including private equity real estate firms The Blackstone Group and BlackRock Realty, in addition to more traditional private equity firms including Kohlberg, Kravis & Roberts and TPG, according to UK real estate magazine, Estates Gazette.
While Morgan Stanley is to market the platform in its entirety, some bidders may be more interested in acquiring ING REIM's regional businesses, according to PERE sources.