US/NETHERLANDS - CB Richard Ellis (CBRE) has completed the acquisition of ING Real Estate Investment Management (ING REIM) Europe, marking the final stage of CBRE's absorption of ING's real estate business.
CBRE has acquired ING REIM Europe for $540m, bringing the total sale value of the various real estate businesses to approximately $940m. ING agreed to sell all three ING REIM businesses to CBRE in the first quarter of 2011. CBRE purchased Clarion Real Estate Securities (CRES) on 1 July and ING REIM's Asian business on 3 October (Global Pensions: 4 July 2011).
CBRE Group's existing real estate business will merge with ING's real estate investment operations in Europe. The combined entity, including the ING REIM Asia operations, will operate as CBRE Global Investors, headquartered in Los Angeles, said the firm.
The acquisition brings the firm's total assets to approximately $94.8bn as of September 2011.
CBRE will also acquire up to $75m of real estate co-investments managed by ING REIM in Europe. This is in addition to co-investments of approximately $75m acquired in the previous two transactions.
CBRE said it also expects to incur financing, integration and retention costs totalling of around $150m.
CBRE chief executive officer Brett White said: "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. Our expanded investment management business will enhance our service offerings for institutional investors in commercial real estate, and provide us with another source of stable revenues."
ING Group chief executive officer Jan Hommen added: "The divestment of ING REIM fits our strategic objectives of reducing exposure to real estate, simplifying our company and further strengthening our capital base."
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