ING property listed

Dutch finance group ING are set to take advantage of growing interest from retailers and institutions and invest in commercial property.

This week, ING will announce their plans to float a property vehicle with a value of £490 million on the stock market.

Registered in Guernsey, the closed-end investment business will have an equity value of £300 million. Being a closed-end investment, they will manage a mutual fund with a limited number of shares with an annual dividend of 6.25 per cent.

The property investment company are to be called ING Real Estate Income Trust. Current assets are made up from a £1.2 billion purchase of an Abbey National property portfolio.

ING Real Estate Management UK announced the creation of the investment company intends to be an income focused property investment opportunity available to all investors.

Many other funds are eager to setup investment vehicles similar to ING to take into account the massive amount of money that is expected to pour into property investment. The main cause of this wave of capital revolves around SIPPs, which would allow individuals to invest in property as part of their pension. Pension rules will change in April 2006 to allow this.

Date: 22.09.05