Local news

ING Real Estate delivers 50% p.a. return to investors

ING Real Estate Direct Office Fund, the unlisted syndicate established three years ago targeting small office buildings has sold its sole asset at 100 Edward Street, Brisbane for $53.5 million.

The Fund’s investment in the 17 level building shows just how much the Brisbane office market has transformed in recent years. When acquired in 2005, the gross market rent for this type of property was around $300 per m2 which has since more than doubled. Brisbane CBD vacancy was 6% and has dropped to 0.7% in the current market.

ING Real Estate identified a bright outlook for the Australian small office segment back in 2004 so established a syndicate of retail and institutional investors to enter the market. "We got in at the start of the rental growth period and have been disciplined not to dilute investor returns through acquisitions that weren’t accretive" said Fund Manager, Daniel Roland.

The Fund has returned over $2.80 of capital for every $1.00 invested, plus 9% per annum income along the way. "We see it as an excellent time to return cash to our investors so they can take advantage of opportunities elsewhere in the property sector"said Mr. Roland.

"There is a definite place for syndicates that are set up to benefit from specific market opportunities. Going forward we view these as a good model for delivering out-performance for our investors" said Mr. Roland.

For more information on the Direct Office Fund please contact:

Daniel Roland
Direct Office Fund – Fund Manager
Ph: (02) 9033 1029
Email: daniel.roland@ingrealestate.com