CB-ING REIM deal may spark M&A wave

The tie-up between CB Richard Ellis Investors and ING REIM could mark the beginning of a new wave of consolidation, according to Timo Tschammler, managing director of DTZ Germany. 'I wouldn't be surprised if we saw more mergers between some of the German open-ended fund managers that are struggling with liquidity issues.'

Barry Gilbertson, a partner in PwC's distressed property team in London, agreed: 'In a post-recessionary market, the big tend to get bigger. I think that the future of real estate is going to be about asset management and creating a customer-focused business, rather than property management, where you’re changing light bulbs.'

In mid-February, CBRE Group announced it is to acquire the majority of ING Group's real estate investment management business for $940 mln (EUR 696 mln) in cash. In total, CBRE is taking control of $59.8 bn (EUR 43 bn) of assets under management (AUM), including $29.5 bn in Europe, creating a giant with nearly $100 bn of AUM. CBRE currently has AUM of $37.6 bn.

The full article plus analysis and an interview with Pieter Hendrikse of ING REIM who is to lead the combine's European operations appear in the March edition of PropertyEU Magazine. Click on the link below to subscribe