ING REIM invests GBP 33 million for its new client, ICL Pension Trust

On behalf of ICL Common Investment Fund, ING Real Estate Investment Management invested a total of GBP 33 million during 2009. GBP 23 million was invested in three direct property acquisitions and a further GBP 10 million indirectly.

The GBP 120 million mandate was awarded to ING REIM earlier in 2009. This is the first time ICL has had an allocation to property within its investment portfolio.

The three direct purchases are:

• Dukes Park, Edinburgh Way, Harlow. A newly completed trade-counter estate of 41,035 sq ft at acquired for GBP 4.46 million to reflect a net initial yield of 7.33%. The freehold estate is let to eight tenants with an average term of 10 years unexpired. Savills represented ING.
• Launton Road Retail Park, Bicester. A well-let retail estate of 60,000 sq ft acquired for GBP 13.5 million, reflecting a net initial yield of 6.44%.
  The property is currently let to Homebase, Dreams, Pets at Home, Carpetright and Halfords. The average unexpired term is approximately 12.8 years.
• Knight Frank represented ING; NB Real Estate represented the vendor.
  London Road, Colchester. A foodstore let to Aldi with a small retail unit adjoining, purchased for GBP 5.06 million to reflect a net initial yield of 5.95%. The Aldi unit is let for 25 years with fixed rental uplifts equivalent to 2.5% pa payable five yearly. Fineman Ross acted for ING REIM and Molyneux Rose represented the vendor, Molyneux Developments Limited.

ING REIM has also invested GBP 10 million for ICL in a diversified Shopping Centre Fund.

Mike Daggett, Fund Manager for ICL, commented:
“Since signing the mandate in May, we have been sourcing prime assets for the Fund to satisfy the client’s investment objectives.

“The assets we have acquired offer the attraction of a strong income profile and are in sectors which we expect to out-perform as the market continues to recover. We will be making a number of further acquisitions in 2010, continuing the process of building a balanced portfolio for the Fund.”