ING says selling its 50% in Canadian property fund Summit

Dutch financial group ING (NYSE:ING) said on Friday it had agreed to dispose of its 50% in Canadian real estate investment fund ING Summit Industrial Fund LP to a joint venture of local investors KingSett Capital and Alberta Investment Management Corporation (AIMCo).

The deal is in line with ING strategy to focus on widening its banking and insurance operations and reduce exposure to the real estate sector.

The joint venture is also buying the other 50% in Summit from Australian property fund ING Industrial Fund (ASX:IIF), managed by ING and in which the Dutch banking group owns 7.8%.

Summit is being sold for a total of CAD2bn (USD1.9bn/EUR1.5bn), assumption of debt included, ING said.

In a separate transaction, ING will sell Summit's manager ING Real Estate Canada to the joint venture for an undisclosed price.

The disposal is seen closing in the fourth quarter of 2010, pending approval by regulators.

The divestment will not affect ING Group's results, or the announced evaluation of its global real estate management business.

Summit focuses on Canadian light industrial real estate and has a portfolio of 400 industrial properties.

Country: Canada;

Sector: Banking/Financial Services; Construction/Real Estate

Target: ING Real Estate Canada; ING Summit Industrial Fund LP

Buyer: KingSett/AIMCo JV

Vendor: ING Groep NV; ING Industrial Fund

Deal size in USD: 1.9bn (Summit)

Type: LBO; Divestment

Status: Agreed

Comment: Debt included in the price

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