ING Development faces uncertain future after split-up

The future of ING Real Estate Development remains uncertain following the split-up of parent company ING Group into separate banking and insurance units. In due course, the bank plans to spin off the insurance arm altogether and focus exclusively on its European banking activities.

In an interview with PropertyNL, the sister publication of PropertyEU, CEO Jan Hommen declined to give clarity on whether the development of commercial real estate fitted in with the new-style ING Bank and whether there would still be a place for ING Real Estate Development in the longer term. 'I have my own view on this, but I have not yet discussed it with the rest of the organisation.'

The financial results of the development arm are reflected in the profit and loss account of ING Group, leading to potentially huge fluctuations on a quarterly basis. Hommen: 'I think we are now scraping the bottom of the market. Before we take a decision on which units we want to sell, and if so, when, I would first like to profit from the upturn in the book value of these activities.'

ING Group said the insurance activities would be spun off by 2013 in a sale to one or more parties or via an initital public flotation. Under a plan announced earlier this year the three divisions of ING Real Estate have already been split up with real estate development and finance now falling under the banking unit while ING Real Estate Asset Management is now part of the insurance unit.