CBRE Closes on ING’s Europe Operations for $540M

In another piece of its acquisition of ING Group's real estate management operations, CBRE has just closed on the European business -- paying $540 million -- after nabbing the Asia operations last month.

November 1, 2011
By Nicholas Ziegler, News Editor

And another piece of the deal is done. As Commercial Property Executive reported previously, CBRE Group Inc. has been in the process of acquiring parts of ING Group N.V.’s real estate management operations, a process that started in July. In early October, CBRE purchased ING’s operations in Asia and, yesterday, both firms announced that the European theatre has reached a close as well.

The ING operations in Europe — including the ING Real Estate Select global fund of funds business — are being merged with CBRE’s existing real estate investment management business, and the combined entity, including the Asia business will operate as CBRE Global Investors, headquartered in Los Angeles.

Brett White, CEO of CBRE, characterized the deal as a “source of stable revenues” for his firm, added that “with the ING REIM Europe acquisition, we have completed the most transformative transaction in our industry since our purchase of Trammell Crow Company in 2006.”

CBRE paid approximately $540 million for ING Europe, part of the nearly $900 million total price for all of ING’s operations. As part of the most recent transaction, over the next several months, CBRE will also acquire up to approximately $75 million of real estate co-investments managed by ING REIM in Europe — in addition to co-investments of approximately $75 million acquired as part of the ING REIM Asia and ING Clarion Real Estate Securities transactions.

“Completion of the ING REIM acquisition is a significant milestone for our firm,” Matt Khourie, global president of CBRE Global Investors, said. “With the ING REIM talent and resources we’ve added globally — coupled with our research-based approach to real estate investment — we can offer clients an expanded global platform to meet their investment objectives in key markets across the world.”

CBRE is set to offer more information on the deal later today in a conference call to investors.