ING Industrial Fund, owner of industrial properties in Australia, Canada and Europe, is seeking to raise A$700m to repay debt and resume development activities.

In a 1-for-1 non renounceable entitlement offer, IIF will raise A$544m from existing unitholders and will raise another A$156m from an institutional placement.

The new units are priced at 48c each -- offering investors a big 20% discount to yesterday's closing price of 60c each.

IIF chief executive Paul Toussaint said today that the trust would reduce its borrowings in Australia from $1.6 billion to $900m, and its gearing ration would fall from 53.9% to 33.5%.

The Australian