ING Real Estate Community Group (ILF) will be spun off from ING Group and rebranded as Ingenia Communities.
The fund's responsible entity, ING Management, proposed the management internalisation after a review by ING of its Australian real estate business, ING Real Estate Investment Management Australia.
The transaction will not include a payment from the management of the fund to ING, while ING will provide $4.1 million worth of support services and waived management fees.
"The proposal is the culmination of a number of alternative initiatives explored by the independent board committee, including the transfer of management rights, liquidation of the fund, soliciting a cash offer for the units of ILF and a merger with a third party," the company said.
ILF chief executive Simon Owen and Australian seniors general manager Nikki Fisher will transition to the new company.
ILF is a stapled real estate investment trust (REIT) that invests in senior housing communities.
The REIT had $560 million in assets under management, with assets in Australia and the United States.
