ING Clarion Partners is putting together a fund to invest in properties in Mexico. The company first ventured into Mexico through its Lion Industrial Trust, a $2.5 billion industrial fund launched last year, and is now preparing a dedicated effort, according to an ING official.

The company is responding to investors who are seeking higher yields from non-U.S. investments. ING Clarion has already set up acquisition and research teams in Texas, which are developing relationships with local partners. The fund will be structured as a non-traded real estate investment trust. Initial plans are to launch the fund in the third quarter, the official said. ING has not set a target for the fund, which will be oriented toward retail investors.

Last year, $3.41 billion of real estate deals were completed in Mexico. Nearly 80% of that amount involved foreign investors, according to data from Jones Lang LaSalle. Industrial/warehouses deals generated yields of around 8.5% in Mexico City and 10% outside Mexico City. By comparison, prime office yields in Europe are about 4-5% in major cities.