ING sells stake in US senior community portfolio

An ING senior housing fund has agreed to sell half of its 15-property portfolio to a Canadian REIT for nearly $170 million.

ING Real Estate Community Living Group, on behalf of its eponymous senior housing fund, has agreed to sell a 50 percent stake in a portfolio of US independent supportive-living communities to an Ontario-based senior housing REIT.

According to an announcement from ING, Chartwell Seniors Housing Real Estate Investment Trust will purchase the interest for $169 million, net of a mark-to-market adjustment of $2.5 million on the portfolio’s debt. The portfolio consists of 15 communities, comprising nearly 3,000 suites across nine states. As of 30 June, the properties were 86 occupied. 

“The partial US sale significantly deleverages the fund's balance sheet and is in line with our strategy of refining our portfolio to concentrate on the Australian retirement market,” said chief executive Simon Owen in a statement. Proceeds from the sale will go to reducing outstanding indebtedness under the fund’s existing Australian debt facility.

The ING fund, however, will retain the premium Bristal portfolio, consisting of six seniors communities on New York’s Long Island. The value in those six assets, which will be operated under a joint venture between ING and Chartwell, is $132.2 million.  

This sale is part of ING Group's overall plan to divest most of its global real estate investment holdings. Richard Ellis picked up the bulk of its holdings through its merger with ING Real Estate Investment Management earlier this year. 

In March, ING sold the ING Industrial Fund to Goodman Trust Australia and transferred management of the ING Office Fund to Investa Property Group. More recently, ING agreed to sell its 60 percent interest in the ING Real Estate Healthcare Fund to APN Property Group. 

ING Real Estate Community Living Group manages A$738 million (€560 million, $791 million) of senior housing communities in Australia, New Zealand and the US. It also owns a small amount of student accommodation in New Zealand.