CBRE announces definitive agreements to acquire majority of ING Group REIM

CBRE announced that it has entered into definitive agreements to acquire the majority of the real estate investment management business of Netherlands-based ING Group N.V. (ING) for approximately $940 million in cash.

The acquisitions include substantially all of the ING Real Estate Investment Management (ING REIM) operations in Europe and Asia, as well as Clarion Real Estate Securities (CRES), its U.S.-based global real estate listed securities business. CB Richard Ellis will not acquire ING’s U.S.-based private market real estate investment management company.

The ING REIM operations being acquired will become part of CB Richard Ellis’ Global Investment Management segment (CBRE Investors). The businesses fit together exceptionally well. CBRE Investors has primarily focused on value-add and separate accounts. ING REIM has primarily focused on core funds and global listed real estate securities funds, except in Asia, where ING REIM manages value add and opportunity funds. There is also expected to be little overlap in the companies’ client bases, with a majority of CBRE Investors’ clients being U.S.-based and a majority of ING REIM’s based in Europe.

CB Richard Ellis will also acquire approximately $55 million of CRES co-investments from ING and potentially interests in other funds managed by ING REIM Europe and ING REIM Asia. In addition, the Company expects to incur transaction costs relating to the acquisitions of approximately $150 million (pre-tax), including financing, retention and integration costs. The acquisitions are expected to close in the second half of 2011 and are subject to approval by certain stakeholders, including regulatory agencies in the U.S., Europe and Asia.

As of December 31, 2010, the assets under management in the ING REIM portfolio CB Richard Ellis is acquiring totalled approximately $59.8 billion, including $29.5 billion in Europe; $5.1 billion in Asia; $19.4 billion in listed securities; and $5.8 billion in global fund of funds. CBRE Investors’ assets under management totalled $37.6 billion as of December 31, 2010.

“The transaction will have a positive impact also at a local level.” – commented Adrienne Konthur, Managing Director at CBRE Budapest. „ING REIM is a well-known owner of a notable real estate stock in Hungary. We are fully convinced that the cooperation based on the two companies’ professional competence and experience will be beneficial for both parties.”

About CB Richard Ellis

CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2010 revenue).  The Company has approximately 31,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE has been an active participant of the Hungarian office property market since 1994. Her partners include TriGranit, AXA REIM, SCD and WING, while her clients include AstraZeneca, Nokia Siemens Networks and Oracle. CBRE’s aim is to provide services faster, more reliably and more cost-efficiently than her competitors.  CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting.