Managing director Maris Tarab said yesterday that the fund would return 12.8 per cent on average over its 20-year term. The return in the first year of investment will be 9 per cent and will gradually move up thereafter.

ING is now putting together a property fund backed by an office building.

"If possible, we'll launch it next month. If not, it must be postponed to next year," Maris said.

Pimpaka Wanglee, managing director of Rangsit Plaza Co Ltd, the owner of the Future Park shopping centre in Pathum Thani, said the company would invest Bt1.6 billion for 33 per cent of this fund. The proceeds its raises will be used to repay Bt2.6 billion in loans, while Bt600 million will go to working capital.

The initial public offering runs from tomorrow until next Friday.

Property funds have gained in popularity amid the stable interest rate environment. Many have been introduced by asset-management firms, including ING, which brought

out the TU Dome Residential Complex property fund last month.

SCB Asset Management recently created the Bt7.97-billion closed-end Quality Houses Property Fund for the public. It will invest in three office buildings with 103,983 square metres of space. Siam City Asset Management, a unit of Siam City Bank, in September was about to initiate a property fund with the Koh Samui airport as the underlying asset, but the plan has been deferred to this month.

Piyarat Setthasiriphaiboon

 The Nation