Dear Unitholder,I would like to provide you with an update in relation to ING Office Fund (“IOF”).On 28 March 2011 ING Management Limited (“IML”) as the responsible entity (“RE”) of IOF announced:
- ING REIM (“ING”) had agreed terms to transfer management of IOF to Investa Property Group (“Investa”); and
- Investa is also acquiring the 2.5% stake in IOF currently owned by ING Group, (together the “Transaction”).
The Transaction involves a transitional management arrangement where IML will remain as the RE of IOF and Investa will replace ING Real Estate Investment Management Australia (“REIMA”) as the manager of the Fund. During this period, Scott MacDonald, Chairman and CEO of Investa, will join the IML Board.It is intended Investa, at a future point, will seek IOF unitholder consent to replace IML as RE of IOF with an Investa entity or purchase IML. Further explanation of the transaction is included in the attached Appendix.As part of the transaction, “ING Office Fund” will be renamed “Investa Office Fund”, the current ASX ticker code of “IOF” will remain the same. I would like to reassure IOF unitholders that Investa is committed to deliver on IOF’s existing strategy, which is to:
- conduct a phased withdrawal from offshore markets over time;
- re-focus the portfolio on Australian A-grade assets in core CBD markets;
- drive performance at the asset level; and
- apply an active approach to capital management, which may include a unit buy back and a refinance of IOF’s Australian syndicated debt facility on market competitive terms.
REIMA will provide full support to IOF and Investa to ensure the transition phase of the Transaction is as seamless as possible for unitholders.In addition, several key REIMA employees, led by Tino Tanfara, IOF Fund Manager, will join Investa which will ensure a smooth transition and ongoing efficient management of the Fund.Information relating to the Fund can be found on www.investa.com.au/IOF
. Going forward, the Fund’s Share Registry Manager, Link Market Services
may be contacted on 1300 851 394. Alternatively, queries regarding IOF may be directed to Investa on 1300 130 231 or email email@example.com
Yours sincerely,Kevin McCannIndependent ChairmanING Management Limited