ING Real Estate wins KFN transaction

After an extensive bidding process involving 14 parties, ING Real Estate has won a transaction with the Dutch civil servants pension fund ABP regarding KFN, a vehicle wholly-owned by ABP which owns a portfolio of EUR 1.6bn comprising some 600,000 square meters of prime office properties, located across the Netherlands. The transaction not only involves a portfolio of exceptional quality, it is also the largest real estate transaction in the Netherlands to date. This success is the result of a joint effort of a team of at least thirty people from several departments within REIM Europe, ING Real Estate Capital Advisors, REF, and corporate staff departments

David Blight said: “I congratulate the deal team with this fantastic win. This transaction with one of the largest and most admired pension funds in the world sends a very positive message to investors about our capabilities. In addition, it gives a very strong signal that ABP will invest EUR 365 million equity with us as part of the deal. Hats off to all those who worked incredibly hard over at least the last four months to pull this off.”

Key elements of the transaction are that KFN properties that fit the strategy of ING Dutch Fund will be transferred to the fund, while other properties will be held by a fund designed to hold, rework and ultimately sell the assets in the medium term. The KFN team of 44 people will transfer to ING Real Estate complementing our existing fund teams.

The transaction enlarges the ING Dutch Office Fund and lowers its risk profile while maintaining its return expectations.

Download the press release for more information.