ING IM to focus on commercial real estate loans
ING Investment Management (ING IM) has announced a partnership with ING Real Estate Finance (ING REF) in order to increase access to commercial real estate as asset an class.
According to the Dutch investment manager, commercial real estate loans are currently at the most attractive level in 8 years, because the underlying valuations are improving, while the returns on loans remain lucrative.
Within the partnership agreement, ING IM and ING REF will offer bespoke portfolios of commercial real estate loans to institutional investors. They have already won a mandate by Dutch insurer Nationale-Nederlanden Life, which has funded the initiative with more than € 400mn and the potential to grow to a total of € 750 million.
Overall, ING IM currently managed €2bn in commercial real estate, while ING REF has a loan book of €23bn.
Peter Göbel, CEO ING Real Estate Finance Netherlandsc comments on the partnership: “This new and unique proposition allows ING REF to leverage its origination and lending capabilities to bridge the gap in the market between capital providers looking for attractive spread products, and real estate companies seeking loans for acquisitions and refinancing.”