ING Industrial Fund is the latest vehicle to head offshore but it has its sights more on Europe than the United States.
The plan to head overseas was revealed when the fund announced an 8.5 per cent rise in net profit to $52.7 million for the six months ending December 31, 2004.
Distribution for the period rose 2.8 per cent to 7.3c a unit, while total return, being income and unit price increase, was 24.3 per cent over the six months.
Earnings per unit rose 3.3 per cent to 7.35c a unit, while rental grew an average 3.5 per cent.
The results were in line with market expectations and the fund is tipped to produce higher distribution returns given the high level of demand and low supply of industrial assets.
ING Industrial Fund chief executive Paul Toussaint said the fund was keen to expand offshore given the lack of available assets in Australia.
“We are looking at acquisitions, mainly Europe, but not the United Kingdom, at this stage, and may make the first one by the end of the second quarter of this year,” Mr Toussaint said.
“The fund is looking at all types of investments, such as joint ventures with ING Real Estate, closed-end funds and individual assets.
“In the long term an exposure of about 50 per cent of our business may be offshore.”
“Our commitment to invest in quality properties and development sites in prime locations is continuing to reap rewards, with the latest property revaluations for 10 properties providing an overall increase of $23.5 million, or 7.9 per cent above book value,” Mr Toussaint said. “This resulted in the net asset value rising to $1.69 per unit.”
During the reporting period the fund acquired a prime industrial property, Huntley Business Park in Alexandria, for $20.6 million.
It also bought a development site in the high profile Norwest Business Park for $2.2 million in a joint venture with ING Real Estate Investment Management Australia and a strategic site in Thackray Street, Port Melbourne, adjoining the fund’s Port Melbourne Industrial Estate, for $1.94 million.
Mr Toussaint said the fund’s current development projects totalled $63.6 million and it had $113 million of assets in four sites in a joint venture with Australand.
Source: Sydney Morning Herald
Photo credit: CharlesFred via VisualHunt / CC BY-NC-SA
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