CBRE closes acquisition of ING REIM's European operations

CBRE Group has completed the acquisition of ING Group's real estate investment management operations in Europe, which will now operate as CBRE Global Investors under the leadership of CEO EMEA Pieter Hendrikse. The total purchase price for ING REIM Europe amounts to $540 mln (EUR 394 mln), the Los Angeles, California-based company said.

ING REIM's European operations - including the ING Real Estate Select global fund of funds business - are being merged with CBRE Group's existing real estate investment management business, creating a company with more than 1,100 employees in 21 countries, and over 600 institutional clients worldwide.

'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,' said Brett White, chief executive officer of CBRE. '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.'

With the acquisition of ING REIM's Europe and Asia operations and its global real estate securities business, which closed on 1 July 2011, CBRE Global Investors now has just under $95 bn (EUR 65 bn) of assets under management.

CBRE has paid a total of $900 mln for the three ING businesses, financed out of a combination of cash and borrowings, including $800 mln of bank debt raised in March 2011.

As part of the transaction, CBRE is also acquiring up to $75 mln of real estate co-investments managed by ING REIM in Europe. This is in addition to co-investments of $75 mln acquired as part of the ING REIM Asia and ING Clarion Real Estate Securities transactions.