ING renounces pre-financing after TU-PF fine debacle

       ING Funds will not set up any property funds to provide pre-financing following its experience with the T.U. Dome fund,said managing director Maris Tarab.
       ING plans to launch at least one property fund this year, a leasehold fund investing in an agricultural distribution centre expected to be finished in October.The fund will offer no guarantees on returns, but projects an annual yield of 9% and an internal rate of return of 10%over the 30-year lease.
       The company has several other funds in the pipeline, including infrastructure funds, biomass and biogas funds, said Mr Maris.
       A fund worth 2-3 billion baht will be set up to invest in six biomass projects set to be completed within one year,with an internal rate of return of 12%.
       A larger,10-billion-baht biomass fund will be established within three years, a project launched in co-operation with the Industry Ministry to invest in alternative energy power plants.
       "Alternative energy power plants are quite popular among foreign investors right now," he said.
       ING Fund took a public beating last month after the Securities and Exchange Commission fined the company 1.9 million baht and put Mr Maris on probation for three years due to fiduciary violations regarding the management of the T.U.Dome Residential Complex Property Fund.
       The TU-PF fund was launched in 2006 to invest in dormitories and serviced apartments on land owned by Thammasat University's Rangsit campus. After the buildings were complete, the fund was to lease the property from Thammasat for 30 years.
       But the SEC said in a statement that the land to be leased to the fund had other owners as well, and that Mr Maris,as the fund manager, authorised payments to the contractor before the lease was registered or the buildings completed. Mr Maris has denied any wrongdoing.
       ING Funds currently has assets under management of 180 billion baht, with a target of 200 billion by the year-end and 240 billion by the end of 2010, driven largely by the establishment of new property funds. Assets under management at the end of 2008 were 170 billion baht.