ING's Australian healthcare fund left with one suitor

AMSTERDAM | Tue Jan 18, 2011 9:23am EST
AMSTERDAM Jan 18 (Reuters) - ING Real Estate Healthcare
Fund (IHF) (IHF.AX), an investor in Australian healthcare
properties managed by Dutch bancassurer ING's (ING.AS) real
estate arm, will no longer be pursued by one of its two suitors.
ING Real Estate Investment Management (REIM), which owns 2.4
percent of IHF, said in a statement on Tuesday that NorthWest
Value Partners had said it would not be proceeding with its
proposal to acquire IHF for A$0.95 per unit in cash.

This leaves competitor Reit Management & Research (RMR),
which has made a higher, A$1-per-unit cash offer for IHF, in a
stronger position to acquire the fund, which has a market value
of A$68 million. IHF shares closed at A$0.96 on Tuesday.

The board of IHF's manager is working with RMR as it
continues with due diligence, and to clarify the conditions of
its approach, REIM said. NorthWest has indicated that if
circumstances change it could resume dialogue, REIM added.
REIM had said on Dec. 31 that it had not formed a view on
the merits of either proposal and that there was no guarantee
that a formal, binding proposal for all of the issued units in
IHF would be received from either party.

REIM is itself under the hammer. ING said on Monday that it
was in discussions with several parties on a possible sale of
parts of its real estate arm, whose property portfolio is valued
at over 65 billion euros.

A consortium led by Australia's top listed property firm
Goodman Group (GMG.AX) has bid A$1.4 billion for
Australian-listed ING Industrial Fund (IIF.AX).

REIM, which manages the industrial fund and owns 7.9 percent
of its shares, supports the bid. (Reporting by Greg Roumeliotis;
Editing by Jon Loades-Carter)
Source: Reuters.Com