Limited partners in Creed Real Estate Partners, a Japanese real estate fund with gross assets of $1.1 billion, have appointed ING Real Estate Investment Management as its new GP.
The firm’s Asia platform, led by regional chief executive officer, Richard Price, has replaced Tokyo-based Creed Group after the firm fell into financial difficulties last year.
The fund, to be renamed the Nozomi Real Estate fund, closed in 2006 on ¥56.6 billion (now €456 million; $613 million) and is fully invested. The assets are predominantly offices and residential assets in the greater Tokyo area.
ING REIM’s brief will be to manage out the fund and generate as positive a return on equity as possible. It is understood that the portfolio of assets is leveraged at approximately 60 percent loan-to-value on current valuations and that a number of the loans will shortly need renegotiating.
In addition to assuming the management of the assets, ING REIM will also inherit 20 staff bringing its total head count for the region to 120.
The appointment brings ING REIM’s total assets in Japan to approximately $2 billion. The firm’s exposure to the country was boosted last year when it took over the management of New City Asia Opportunity Fund after the GP’s owner, New City Corp., relinquished some of its businesses amid its own financial difficulties.
The appointment also brings ING REIM’s assets under management in Asia back up to approximately $5 billion after it recently made a number of exits in Korea.