AUSTRALIA: Big Time Investments in US Retirement Properties

SYDNEY (The Australian), May 10, 2006: THE listed ING Real Estate Community Living Fund (ILF) has made its second big US retirement village acquisition in a matter of weeks, buying a 49 per cent stake in a portfolio valued at $US128.2 million ($167 million). Known as the Cypress portfolio, it consists of 818 units of independent-living seniors housing, located in Michigan, Tennessee, Alabama and Oklahoma. ILF said it would raise $63.6 million to fund its latest purchase and to retire debt in Australia. As with its other US investments, the assets would be acquired through its US partner, Chartwell Seniors Housing REIT, the second-largest REIT investing in senior housing in Canada. Last month the fund bought a half stake in a $US181 million US retirement village portfolio. Hugh Thomson, chief executive officer of ING Real Estate Investment Management Australia, said the latest transaction would add about 2 per cent to ILF unitholders' distribution. ILF chief executive officer Ian Muir said the fund had further enhanced its exposure to the US seniors market in areas with strong income demographics. Previously he said he expects the fund's assets to rise to more than $1 billion by the end of this year and they could double over the next two years. ILF has further lessened its exposure to the Australian and New Zealand retirement sector, which represented 35 per cent of the fund's assets before the latest acquisition. By Florence Chong The Australian Copyright