ING Real Estate raises €150m for CEE

The global property investment group is fundraising on four other fronts as part of its ambition to invest €4.5bn in Europe.

ING, the Netherlands-based global property investment group, has kicked off 2007 by raising €150 million ($197 million) in the first close of the ING Property Fund Central and Eastern Europe.

It is the second in a suite of five new ING property funds to announce a first closing as part of a €4.25 billion investment push into the UK and the Continent.

The first closing was for the Nordic Property Fund towards the end of last year. The firm continues to fundraise for the other three funds: the French Residential Property Fund, the Infrastructure Fund and the Healthcare Property Fund.

ING’s CEE product is an open-ended fund targeting €1 billion of acquisitions. It hopes to return between 10 and 11 percent by investing in core and value-added real estate investments in Poland, the Czech Republic, Hungary, Slovakia, Romania and Austria, with a particular focus on the retail sector.

“The Central and Eastern Europe region offers diversified investment potential for real rental growth in combination with yield compression opportunities,” Martin Sabelko, managing director of ING Real Estate Investment Management Central Europe, said in a statement today.

The CEE vehicle’s seed portfolio consists of two properties, the details of which have not been released. ING says it should have properties with a combined value of €400 million by the end of the year.

The Nordic Property Fund was the most advanced in terms of seed assets out of all five new products launched in October. It launched with €560 million worth of property.