ING Real Estate Investment Management (ING REIM) has entered into contracts to transfer the management of the ING Office Fund (IOF) to Morgan Stanley-owned Investa Property Group (Investa).

Investa is also acquiring the 2.5% stake in IOF currently owned by ING entities. The transaction is part of ING's previously-announced intention of undertaking a phased withdrawal from the Australian property funds management business in a timely and controlled manner.

The deal will result in a transitional management arrangement where ING Management will remain as the responsible entity of IOF. Investa will assume day-to-day management of IOF and replace ING REIM Australia (REIMA) as the manager of the fund. Several ING REIMA employees, led by IOF's current CEO Tino Tanfara, will join Investa to ensure a smooth transition and ongoing efficient management of the fund.

IOF owns a portfolio of 23 commercial real estate assets in Australia, US and Europe worth more than $2.6 bn (EUR 1.9 bn). On the European continent, IOF holds a portfolio valued at roughly EUR 350 mln, including a 50% stake in the BastionTower at Avenue des Artes in Brussels, a 50% interest in the Neuilly Victor Hugo building in Neuilly-sur-Seine near Paris as well as a 13.4% stake in ING's Dutch Office Fund, according to the company website.

ING announced in February that it had finalised the strategic review of its Australian REIM platform and its five ASX-listed real estate funds. The company has already given the green light to the sale of its industrial fund to Goodman Industrial Funds Management. ING said progress is also being made in evaluating alternatives for its three other funds; ING Entertainment Fund, ING Healthcare Fund and ING Community Living Fund

'Work is currently being completed including active discussions with a number of external parties,' the company said.