REAL ESTATE

ING Industrial Fund (IIF)

AustraliaAustralia
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ING Industrial Fund

ING Industrial Fund is a property trust publicly listed in Australia and included in the S&P/ASX 100 index. With total assets of $5.6 billion and a portfolio of over 500 prime industrial properties and business parks, IIF is Australia's largest listed industrial trust.

IIF has a highly diversified portfolio spanning across Australia, Canada and Western Europe.  IIF's development pipeline caters for the expansion requirements of its customer base and attracts new companies to the Fund's property portfolio.

Strategy

IIF invests in well-located industrial properties, focusing on assets with income and capital growth potential over the medium to long term. The Fund is characterised by:

  • A diversified portfolio by location, tenant and lease maturity.
  • Tenancy pre-commitments are sought from quality tenants in properties that are suitable for further development.

This strategy benefits the Fund by way of higher investment yields, lower acquisition costs, newly-constructed quality buildings with long-term leases and taxation benefits.

Investment performance

FY08 results: 

  • recorded 7.5% increase in distributions from pcp to 17.90 cents per unit;
  • completed construction of over 167,000 sqm of new space in Australia and Canada;
  • current development under construction of 407,000 sqm; 
  • successfully refinanced $2.3 billion of debt facility in Australia and Canada;
  • contracted sales of $123 million of non-core assets with proceeds used to reduce debt and fund development commitments; and 
  • maintained a high portfolio occupancy rate of 98% and a weighted average lease term to expiry of 5.1 years.
Performance facts
Net asset value per unit:$2.09 per unit
Market cap:$1.8 billion
Acquisitions/Divestments:New investments of $133 million.
Non-core asset disposal of $123 million
Leasing/Asset management:

973,000 sqm leased representing $56.9 million
96% of earnings sourced from property rents

    
  NB. Figures as at 30 June 2008.

 Geographic diversification

IIF's portfolio consists of over 80 properties located throughout Australia and Europe, and a 50% share in over 460 properties across Canada. These are all high-quality assets located in key industrial markets. See the Property Portfolio section for more information.