Dutch financial services firm ING has signed an agreement to sell its 50% stake in ING Summit Industrial Fund LP, a Canadian light industrial property portfolio, to a joint venture between KingSett Capital and Alberta Investment Management (AIMCo).
The transaction value for 100% of Summit is approximately C$2bn and includes assumed debt.
Apart from having direct investment in Summit, ING also has an indirect participation through its 7.8% unit holding of ING Industrial Fund (IIF), an ING-managed listed property fund in Australia which owns the remaining 50% in Summit.
As part of the transaction, IIF has agreed to simultaneously sell its stake in Summit to KingSett/AIMCo. Consequently, ING’s indirect participation in Summit will end as well.
Separately, ING has also agreed to sell ING Real Estate Canada, the manager of Summit, to KingSett/AIMCo for an undisclosed amount.
ING Group CEO Jan Hommen said that this transaction is in line with the company’s stated objective of reducing its exposure to the real estate industry.