ING Real Estate Investment Management has launched a property fund for central Europe which aims to have a portfolio of 600 million euros ($733.1 million), the company said in a statement. The non-listed Central Europe fund invests in retail and office properties and has a starting portfolio of 315 million euros to invest in Hungary, Poland and the Czech Republic.
"Over the course of the commitment period, the portfolio is expected to grow to 600 million euros," ING Real Estate said.
The fund aims to achieve an internal rate of return of 13.5 percent and has a 12-year life. ING said the fund was leveraged at 60 percent.
Earlier last month, fund management group Invesco teamed up with property company Orco for a 150 million euro property fund for the region, while the European Bank for Reconstruction and Development and Italy's Generali recently set up a property fund which, with leverage of up to 700 million euros, is targeted to reach 1.0 billion euros.
Source: Reuters
02.06.2004