ING Real Estate Investment Management is offering European insurance companies a chance to invest in its 14 unlisted property funds in Europe via an open ended vehicle.
The European Property Strategy, as the firm calls it, is a feeder fund that has been created because investors are increasingly looking to diversify their real estate portfolios, said ING.
In a statement to PERE, the firm said it opened up ING REIM’s European property platform to a broad range of investors who were not able to gain exposure to ING REIM Europe’s property funds prior to their launch.
Investors in the product are not charged a fee unless it has small investment amount, in which case it will be subject to a management fee for covering increased handling costs of their investments.
A Swiss insurance company has invested €100 million in the open-ended fund via several of its country subsidiaries, though ING did not name the investor.
The 14 in-house unlisted funds contain €18 billion of assets under management, with different country and asset-type focusses.
The forecasted total return amounts to 8 percent, it added.
Wim Wensing, who joined ING in 2000, is to become the fund manager of the new vehicle. He is currently managing the ING Dutch Residential Fund and is managing director of Regulated Fund Management, the department that manages EPS.
Tjeerd Jansen, who joined a year after Wensing, is to become its portfolio manager. He has held various positions as senior research analyst and products and structuring manager.