ING Real Estate Select will launch a $675 million Asian property fund of funds in the first quarter of 2009, the firm said. It hopes to hold a $250 million first close early next year.
The ING Real Estate Select Asia-Pacific Property Growth Fund will invest in closed-ended property fund of funds covering retail, commercial and residential developments in second and third tier Chinese and Indian cities. ING wants to target funds which can obtain discounts on property purchase.
The firm will provide secondary liquidity to fund investors, setting a 15 percent internal rate of return and only investing in funds of seven to 10 years, with minimum tranches of $5 million.
Nicholas Wong, who joined ING in 2007, as the managing director for its Asian real estate investments will be responsible for the new fund. Dick Popken, formerly of investments company PGGM, will manage its portfolio. There will be a total of six ING staff managing the Asia-Pacific fund, operating from its offices in Hong Kong and Singapore.
ING Real Estate’s entire property portfolio is worth €100 billion.